May 04, 2016
Shearman & Sterling partner Bjorn Bjerke and counsel Charles Thompson (both New York-Finance) co-authored a chapter in The International Comparative Legal Guide to: Securitisation 2016. The guide, published by Global Legal Group, is in its ninth edition.
The chapter by Bjerke and Thompson, titled “The Transformation of Securitisation in an Evolving Financial and Regulatory Landscape,” examines the history and makeup of securitisations, significant developments in the structures and their uses and the effects of pre- and post-crisis regulatory changes. Particular attention is given to Basel III, Risk Retention Requirements and the Volcker Rule. According to the authors, ” In the aftermath of the global financial crisis that began in late 2007, securitisations have been heavily scrutinised for their role in causing or augmenting the crisis. The scrutiny, suspicion and post-crisis regulatory environment was a full reset button for the securitisation industry.”
Bjerke and Thompson also analyze the shift towards non-bank lenders and less-regulated participants and how that shift has impacted the market.