So the CRT or the credit credit risk transfer is very important at FSOC and the attendant agencies, the members we closely monitor, to make sure that there is no daisy chain effect, that The quality of the risk transfer is at least as high as the entity from which it was bought. What we saw in the GFC was, was a complexity can create a daisy chain. So what we want is transparency. But I think CRTs are very important, but they cannot be opaque. (00:54–01:22)
CLAIM
Asserts that the quality of risk transfer should match or exceed the originating entity's quality.
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