Thank you, Chairman Schapiro.
The recommendation before us is to propose rule amendments to require a securitizer of assets to satisfy a five percent risk retention requirement in certain ABS offerings. These rule changes would go toward implementing Section 941(b) of the Dodd-Frank Act.
I support the recommendation before us and am pleased that the proposal affords securitizers a range of options for satisfying the risk retention requirement. While I look forward to considering all the comments we will receive, I am particularly interested in comments that address whether securitizers should be allowed still more options for meeting their risk retention obligation, including whether the regulation should allow securitizers more flexibility to innovate new methods of risk retention that could meet the five percent requirement.
I join my colleagues in thanking the staff – particularly those from the Division of Corporation Finance and the Division of Risk, Strategy, and Financial Innovation – for your efforts on this rulemaking.