Resources for Basel II Capital Accord (Basel II)

Banks should prepare for post-sub-prime legislation

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As scrutiny continues into the role that mortgage-backed securities played in the credit crunch, data integration specialist, Informatica, believes banks should prepare for new legislation.

"Before the credit crunch bit, Basel II and more specifically the SEC's Regulation AB were the relevant standards relating to the disclosure and reporting of risk and asset-based securities data. With the bias of hindsight, it is clear that these did not avert the current crisis."

Prior to 2007, mortgage-backed securities sold between financial institutions to provide capital for further mortgages were widely heralded by the financial services industry as a low risk method of raising funds. This situation unraveled, however, when it emerged that many of these supposedly high quality investment vehicles were revealed to be comprised of low quality US sub-prime mortgages

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