CAMBRIDGE, Mass., July 10 MA-CCMR-New-Study
CAMBRIDGE, Mass., July 10 /PRNewswire/ -- The Committee on Capital Markets
Regulation (CCMR), an independent and nonpartisan research organization formed
to improve the regulation of the U.S. capital markets, announced today a new
study -- "Fundamental Issues in the Securitized Debt Markets" -- designed to
produce recommendations to restore securitized debt markets devastated by the
ongoing credit crisis.
Hal Scott, the Committee's Director and Nomura Professor at Harvard Law
School, said: "The worsening state of the debt markets and the continued
deterioration of the competitiveness of the U.S. equity markets, are a major
concern. Without stronger capital markets, full economic recovery in the U.S.
will not be possible."
The Committee's recommendations will focus on five principal areas:
transparency, consumer protection and borrower relief, capital requirements,
regulatory reorganization and monetary policy (including issues raised by the
Bear Stearns rescue). The Committee will release its report in December prior
to the new Administration taking office.
"Revitalization of the securitized debt markets, on a more prudent
footing, is important to the ability of millions of Americans seeking credit
to buy homes or automobiles," said Professor Scott. "Further, it is crucial
for spreading risk in the financial system. The banking system would have
been more devastated, and the credit crisis more intense, if banks had been
unable to securitize mortgages or other forms of consumer debt. Revitalization
may indeed require more regulation -- if so, we want to make sure it works, is
consistent with other international initiatives and is cost-justified."
The CCMR has created an Advisory Committee to oversee the research and
recommendations, which will be chaired by Glenn Hubbard, Dean of Columbia
Business School. The Committee will be composed of several CCMR members as
well as outside experts. CCMR members include: Robert Glauber, Visiting
Professor, Harvard University Kennedy School of Government and former Chairman
and CEO, NASD; Blythe Masters, Head of Global Commodities, JP Morgan
Investment Bank; Wilbur Ross, Chairman and CEO, WL Ross & Co. LLC; and Hal
Scott. Outside experts include: Peter Fisher, Co-Head of Fixed Income,
BlackRock, Inc. and former Under Secretary of the U.S. Treasury for Domestic
Finance; Boyce Greer, President of Fixed Income and Asset Allocation, Fidelity
Investments; Robert Kaplan, Professor of Management Practice, Harvard Business
School; John Rutherfurd, Retired Chairman and CEO, Moody's Corporation; and
Jeffrey Solomon, Managing Member, Ramius LLC. The Advisory Committee will
also be assisted by a panel of experts in law, finance and accounting.
The Committee on Capital Markets Regulation is an independent and
nonpartisan 501(c)(3) research organization dedicated to improving the
regulation of U.S. capital markets. In November 2006, the Committee issued
its Interim Report, which found a marked deterioration in the competitiveness
of the U.S. public equity market and proposed 32 regulatory and other reforms
to address the problem. The Committee has also issued quarterly updates of
these findings (available at www.capmktsreg.org), showing a continued
deterioration in U.S. competitiveness.
SOURCE Committee on Capital Markets Regulation
