Umintended consequences strike again. Dodd-Frank is already an economic disaster: German Banks are fleeing the NYSE, parts of the Mortgage market are shut down or operating with emergency exemptions and under temporary rules from the SEC, Fannie and Fredie are bankrupt..why dont they have to operate under the same rules?
.At least 2 issuers pull sales of asset-backed bonds: Ford Motor Credit and at least one other issuer reacted to problems with credit rating agencies by pulling planned sales of asset-backed bonds, fund managers and traders said. Rating agencies are no longer allowing issuers of asset-backed securities to use their ratings in bond
prospectuses because of liability raised by the regulatory overhaul. Reuters
.SEC temporarily eases rules for issuers of asset-backed bonds The Securities and Exchange Commission is aiming to help issuers of asset-backed bonds comply with rules that are part of the regulatory revamp by temporarily allowing them to omit credit ratings on their filings. Meredith Cross, director of the corporatefinance
division at the SEC, said credit rating agencies are not allowing borrowers to include rankings in registration statements. "This action will provide issuers, rating agencies and other market participants with a transition period in order to implement changes to comply," Cross said. Bloomberg
.Germany's corporate giants pull out of the U.S. stock market The biggest companies in Germany are walking away from the New York Stock Exchange and other U.S. securities markets, deciding that financial regulation, lawsuits and accounting rules in the country are more trouble than they're worth. Deutsche Telekom and Allianz are the latest German blue-chip corporations to flee Wall Street. Germany's DAX index of prestigious, household-name firms once had 11 companies on the NYSE, but the number has fallen to four.