By Mercy Jiménez and Spencer Punnett WASHINGTON, D.C.    Although the prime mover in the push for U.S. covered bond legislation is a Republican (Rep. Scott Garrett of New Jersey), substantial support from the other side of the aisle will be essential for any success in the current Democrat-controlled Congress…. Here are some examples from members’ opening remarks preceding testimony by expert witnesses on the topic: Rep. Melissa Bean (D-IL): “Establishing a U.S. covered bond market could be very helpful to the residential and commercial real estate markets, but [also to] other asset markets like public-sector loans and other consumer loans as well.”

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By Mercy Jiménez
American Banker today (Dec. 11) published a “Viewpoint” commentary I wrote on Congressman Scott Garrett’s (R-NJ) groundbreaking proposal for covered bond legislation in the U.S.  
This legislation could open up the way for diversified sources of funding for banks as well as a partial solution for the Fed’s exit strategy on its $1 [...]

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By Mercy Jiménez
Professionals in the U.S. lending community should be keeping an eye on Congressman Scott Garrett’s proposed covered bonds amendment to the Financial Stability Improvement Act of 2009, which is currently pending in the House of Representatives.
If Garrett’s proposed legislation succeeds in becoming part of U.S. law, how competitive could covered bonds become [...]

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Many observers believe that enacting specific federal legislation governing covered bonds will be essential to foster the development of covered bonds as a funding source in the U.S. The following story — hot off the presses — documents a potentially momentous step in that direction:
WASHINGTON, D.C. — U.S. House Financial Services Committee Chairman Barney [...]

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