S.Amdt. 3973

SA 3973. Mr. LEVIN (for himself and Mr. Kaufman) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1047, strike lines 3 through 15 and insert the
following:
``(B) require a securitizer to retain an economic
interest--
``(i) of not less than 5 percent of the credit risk
associated with a pool of assets used to create a series of
asset-backed securities, and ensure that such economic
interest is applied to multiple credit tranches derived from
the pool of assets in a manner reasonably designed to ensure
that the securitizer retains an economic interest in the
success of each class of securities resulting from the
securitization of the asset pool; or
``(ii) of less than 5 percent of the credit risk associated
with a pool of assets used to create a series of asset-backed
securities, if and only if each of the assets in the pool
pose a low credit risk, the originator meets the underwriting
standards prescribed under paragraph (2)(B), and the
securitizer conducts a due diligence review reasonably
designed to ensure the assets and originator meet the
requirements of this paragraph;''.
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