In many ways the CSEs are far less risky than they were before the financial crisis. And one of the reasons has been that the CSEs that credit risk transfer, the CRT piece, those programs. However, Some industry experts are concerned that the CRT program have been significantly diminished and focused on capital arbitrage instead of the real risk reduction. Can you just kind of in general discuss the importance of the CRT with regard to the CSE and ensuring that they're transferring a significant amount of credit risk to the private market and really are then avoiding the risk that the taxpayers take on. (00:26–00:37)
CLAIM
Asserts that industry experts are concerned about the CRT program's focus on capital arbitrage over risk reduction.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
