October 27, 2010
The proposed regulations are superfluous: the obligations already existed under the Securities Act of 1933 and the Securitties Exchange Act of 1934.
The proposed regulations in effect condone previous misconduct on the part of market participants by creating the impression that the conduct involved was not previously illegal.
It would be a far more appropriate use of the SEC's time and resources to prosecute those who violated the laws already on the books with respect to this behavior.
Specifically numerous suits have been filed against Credit Suisse, Bank of America, Countrywide, Merrill Lynch and others, credibly complaining of omission and/or concealment of material facts when securitizing mortgages and other assets.
These suits are a matter of public record and widely commented on in the fiancial press. There is no excuse for the SEC to sit timidly by and ask for comments on proposed regulations when the commission is already empowered to investigate and prosecute by existing laws.