Mar. 27, 2023
March 27, 2023 I fully support Section 27B of the Securites Act of 1933 which prohibits certain securitization participants from engaging in transactions that would involve or result in certain material conflicts of interest. However, I believe the exceptions which are currently written-in as a part of the proposal are inappropriate and will further perpetuate high-risk profit-seeking by institutional and other large market participants. Specifically, risk-mitigating hedging activities, bona fide market-making activities, and liquidity commitments. Organizations that require such an exception must be pushed, through this proposed regulation without the proposed exceptions, to seek alternative ways to reduce risk and manage liquidity requirements. That is surely a core purpose of Section 27B and writing in the proposed exceptions completely misses the mark and, I believe, will allow high-risk profit-seeking to continue. The exceptions allow unsustainable investment strategies to proliferate throughout our market and I am concerned the confidence of investors around the world will deteriorate as the consequences of unchecked risk-taking takes it's toll which will inevitably lead to instability and potential ly financial crisis once again. I support Section 27B, I strongly do not support the proposed exceptions.