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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2009,018

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: Financial Markets ; Financial Markets and the Macroeconomy ; Information and Market Efficiency; Event Studies; Insider Trading ; General Financial Markets: Government Policy and Regulation ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Financial Institutions and Services: Government Policy and Regulation ; International Lending and Debt Problems
• Subject: Financial crisis ; securitization ; mortgage-backed securities ; transparency ; opaqueness ; Asset-backed security ; Wertpapierhandel ; Information ; Datensicherheit ; Finanzmarktkrise ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gründl, Helmut ; Post, Thomas
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/25334
• Last update: 10.03.2025, 11:44 AM CET