The United States and the European Union (“EU”) are at the forefront of financial market re‐regulation in the wake of the most recent banking, financial and economic crisis. Since 2007, they, like those regulators in various other jurisdictions around the world, have instituted new...

This paper applies the theory of structured finance to the regulation of asset backed securities. We find the current regulation in Europe (Article 405 of the CRR) and the US (Section D of Dodd-Frank Act) to be severely flawed with respect to its key intention: the imposition of a strict loss...