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Securitisations - packaged loans traded as securities - have become "stigmatised". (Photo: Bankenverband - Bundesverband deutscher Banken / Jochen Zick, Action Press)

EU endorses controversial finance tool

The European Commission announced on Wednesday (30 September) it wants to revive the securitisation market, embracing a financial practice which in the United States led to the 2008 financial crisis.

Capital markets commissioner Jonathan Hill told journalists in Brussels on Wednesday afternoon that the European economy needs more securitisation, which is the process of packaging loans, mortgages, or other contractual debts, and then selling them as securities.

The British official...

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