AlexPollock of the American Enterprise Institute thinks that securitisers should be required to guarantee the quality of their loan pools, as are America's government-sponsored mortgage giants, Fannie Mae and Freddie Mac.
"All deposit insurance is a moral hazard, and brokered deposits are a moral hazard, squared, " says AlexPollock, a former head of the Federal Home Loan Bank of Chicago and now a fellow at the American Enterprise Institute.