Tuesday, December 15, 2009

London's Mayor proposes "GSBS" ???

GSBS -->>That's my new term for "Green Savings Backed Securities," which London mayor Boris Johnson seems to be proposing at the Copenhagen climate circus.

He implores banks to look at the "commercial opportunities" involved in retro-fitting "The City" with green-friendly features. After citing 1million British pounds spent on "lighting and other elementary devices" in 42 buildings in London, he goes on to say "we think that those kinds of savings from retrofitting buildings across the city can be securitized, turned into a financial instrument..."

If you thought that mortgage-backed securitization was a mess, imagine trying to verify the underlying asset backing these new GSBS - a total nightmare in the making.

Link to video HERE.

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