A bipartisan group of senators, including Bob Corker (R-Tenn.), Mike Crapo (R-Idaho), Kay Hagan (D-N.C.), and Charles Schumer (D-N.Y.), Wednesday sponsored new legislation that would set up a covered bond framework in the U.S.
The bill is nearly identical to one that passed the House Financial Services Committee in June. “The House version was heavily vetted so I think that made it easier for the Senate to pick up something that closely mirrored it,” said Ralph Daloisio, managing director of Natixis and a champion of covered bond legislation.
Daloisio noted that the House bill is still awaiting confirmation from the Ways and Means Committee, which is looking over the measure for its taxation aspects.
He added that the committee is determining whether a separate covered bond estate would be a taxable entity, an idea that Daloisio opposes. “Once that's settled through the House Ways and Means Committee it'll be cleared for a floor vote,” he said.
A vote would help push momentum behind the companion legislation in the Senate.
