Thirty-two financial institutions operating in the EU signeda joint note demanding changes to an EU proposal aimed at reviving the ABSmarket by reducing capital requirements for "simple, transparent andstandardized" debt instruments, Bloomberg News reported April 4.

Signatories, which included , , and ,said the plan could create an "arbitrary division" between existingsecurities and the proposed new class of products, leading to losses "toconservative investors for no discernible prudential benefit," accordingto the newswire.

The group of firms called for a simplification of measuresto bring the proposal in line with rules for other securities of comparablerisk and a "single point of interpretation."

The group also asked for technical changes aimed atpreventing several types of loan products from being left out of the plan,streamlining the due diligence process and adjusting the calibration of newcapital requirements, among other recommendations, the report added.