Resource title

Transparency through financial claims with fingerprints: a free market mechanism for preventing mortgage securitization induced financial crises

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Resource description

Lack of transparency in securitization transactions significantly contributed to the severe financial crisis of 20072009. To increase transparency we propose a new mechanism: financial claims with fingerprints. They would allow market participants at each stage of the securitization process to obtain easily full information about the underlying original risks and the superior claims that need to be satisfied before receiving their own payoffs. The fingerprint mechanism would considerably enhance transparency in securitization transactions at the expense of some transaction costs, while reducing the need for government involvement in securitization markets.

Resource author

Helmut Gr√ľndl, Thomas Post

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25334

Resource license

Adapt according to the presented license agreement and reference the original author.