Newsletter May 09: EU Parliament passes controversial CRD changes

STRASBOURG – New EU legislation, amending the Capital Requirements Directive (CRD), and imposing the controversial 5% “retention” for issuers of securitised credit products, was passed by the European Parliament on May 6. In addition to the securitisation retention, the amended CRD provides for the establishment of supervisory colleges for cross-border banks and beefs up the large exposure rules, including those for interbank exposures.