Ben Bernanke pursued an aggressive QE3 especially targeting Mortgage Backed Securities and hoping to stimulate the economy by the effective reduction in mortgage rates.
On the other hand, Basel III has rigorously targeted securitisations and inter -financial sector exposures for a higher capital requirement - these that once helped fuel the explosive growth of mortgages.
As banks scramble to increase preparedness for the Basel III, they are revisiting their business models to optimize capital usage and almost all re-securitisations will effectively come to an end sooner rather than later.
Following QE3, Ben Bernanke attempts to quell the fears of community banks
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