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The EU wants banks to use a financial tool that helped to cause the subprime mortgage crisis in the US (Photo: EUobserver)

MEPs back plan to 'revitalise' complex financial products

MEPs have approved, with some modifications, a European Commission's plan to stimulate the use a controversial financial tool that helped to cause the 2008 financial crisis in the United States.

The European Parliament's economic affairs committee decided on Thursday (8 December) to back the commission's proposal to "revitalise" the securitisation market - the repackaging of loans, mortgages, or other contractual debts, and then selling off the risk on those loans.

The tools beca...

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