Securitization Lobby in Disarray After Most Directors Quit
The main trade association for the securitization industry is in turmoil after most of the board resigned in a dispute with the group’s executive director over governance and bonuses, according to six people with knowledge of the matter.
The exodus at the American Securitization Forum puts the future of the group in question, said the people, who spoke on condition of anonymity because the dispute isn’t public. Members that quit include Bank of America Corp (BAC)., JPMorgan Chase & Co. (JPM), Deutsche Bank AG, Citigroup Inc. (C) and law firm Cadwalader, Wickersham & Taft LLP, the people said.
The resignations came after the board attempted to remove the forum’s executive director, Tom Deutsch, but was unable to fire him because of the way the association’s governing documents are written, said the people. Part of the dispute concerns bonuses that Deutsch was paid, the people added.
Deutsch, who joined the group’s staff in 2004 after working as a lawyer at Cadwalader, issued a statement saying, “We remain focused on the advocacy and educational needs of all of the interests in the structured finance industry.
Rest here…
~
No Comment