By Dow Jones Business News, March 14, 2013, 05:47:00 PM EDT
-21 firms form new structured finance trade group
-SFIG plans to represent all participants, from banks to investors
-ASF forges ahead with its own advocacy, with more than 300 members
(Updates with ASF comments in 8th and 9th paragraphs.)
By Al Yoon
A group of 21 Wall Street banks, law firms and rating companies on Thursday said they formed a new trade organization
to promote the structured finance industry after many of them abandoned the board of a long-established securitizations
The new group, the Structured Finance Industry Group, will represent all sectors of the market, including banks, law
and accounting firms, and investors, it said in a statement.
Charter members of SFIG, including Bank of America Corp. ( BAC ) and Citigroup Inc. ( C ), formed the SFIG after leaving
the American Securitization Forum, a trade group focused on structured finance, part of the capital markets that
securitizes real estate and auto loans, among other activities.
The resignation by a majority of the ASF's board earlier this month followed a long dispute between directors and ASF
Executive Director Tom Deutsch over the governance of the organization, according to several former ASF board members.
"This is an exciting opportunity for the structured finance industry and we look forward to being an important voice
and strong advocate for our members," said Reggie Imamura, chairman of SFIG's board and executive at PNC Financial
Services Group Inc. ( PNC ).
Other firms that will help form the SFIG are Amherst Securities Group, law firm Cadwalader Wickersham & Taft, Credit
Suisse Group AG ( CS ), Ernst & Young, Fitch Ratings, Ford Motor Credit Co., GM Financial, Morgan Stanley ( MS ), RBS
Securities and Wells Fargo & Co. ( WFC )
Meanwhile, the ASF continues with its advocacy. In a letter on Thursday, it urged the Basel Committee on Banking
Supervision to refrain from rules that would require "excessive" capital be held against a bank's exposures to
Mr. Deutsch said the ASF represents the "breadth and depth" of the structured finance markets, with more than 300
members. The membership compares with earlier ASF estimates of 330.
"ASF continues to work diligently on the pressing advocacy matters facing the structured finance markets, including
preparations for the wave of Dodd-Frank rule implementation on the horizon," Mr. Deutsch said in a statement.
Write to Al Yoon at email@example.com
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