An exodus of directors at the American Securitisation Forum (ASF), the main trade association for the securitisation industry, has put a question mark over the future of the group according to reports.
Citing individuals who have knowledge of the matter, the press reports suggest that most of the group’s board have resigned in a dispute with its executive director over the issues of governance and bonuses. Members believed to have quit include Bank of America (BoA), JP Morgan Chase (JPM), Deutsche Bank, Citigroup and the law firm of Cadwalader Wickersham & Taft.
The resignations were apparently triggered by a failed board attempt to remove the ASF’s executive director, Tom Deutsch, which proved unsuccessful due to the language used in the association’s governing documents. Part of the dispute is believed to have been triggered by bonuses paid to Deutsch, who issued a statement that read: “We remain focused on the advocacy and educational needs of all of the interests in the structured finance industry.”
He added that negotiations since 2010 over the ASF’s separation from the Securities Industry and Financial Markets Association (SIFMA) had proved more difficult than expected.
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