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"This is the world of smart securitisation," said Geoff Smailes, managing director of global credit solutions at BarCap. "It's not securitisation for leverage and arbitrage purposes any more. This is all about restructuring portfolios of assets to achieve risk, capital and funding efficiency in a transparent and less complex way."
right before
However, some regulators may be wary of the invention of new pooled asset derivatives, especially if they are perceived as a way to avoid regulatory capital requirements.

Some rival bankers also view the schemes with scepticism. "This is a system of capital arbitrage," said one senior banker at another investment bank. "The need for capital just miraculously disappears."

which makes the sleight of hand being played all the more obvious. (My emphasis throughout)

A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
by Migeru (migeru at eurotrib dot com) on Mon Jul 6th, 2009 at 09:26:29 AM EST

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