Article: Europeans Wary of MBS.

European mortgage market participants expressed a mixture of skepticism and curiosity about "globalization" and U.S.-style mortgage strategies such as securitization at the first-ever EuroCatalyst conference held at the Westin Palace Hotel here last week.

Fernando Vargas, deputy director general at the Banco de Espana (Bank of Spain) told attendees that, from a banking supervisor's perspective, he has concerns about securitizations - which represent a relatively small but growing part of mortgage markets in Europe. He said he "worries most" about whether securitization provides "a clean break" in terms of isolating financial institutions from the residual ...

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