Five federal agencies today requested public comment on a
revised proposed statement on the complex structured finance activities of
financial institutions. The revised
statement describes the types of internal controls and risk management
procedures that should help financial institutions identify, manage and address
the heightened legal and reputational risks that may arise from certain complex
structured finance transactions.
The agencies have modified the revised statement in several
important respects in light of the comments received on the original proposed
statement, which was issued for comment on May 19, 2004. For example, the agencies have reorganized,
streamlined and modified the statement to make the document more
principles-based and focused on those complex structured finance transactions
that may pose heightened levels of legal or reputational risk to a financial
institution.
The proposed statement was issued by the Board of Governors
of the Federal Reserve System, the Federal Deposit Insurance Corporation, the
Office of the Comptroller of the Currency, the Office of Thrift Supervision and
the Securities and Exchange Commission.
The revised statement would represent supervisory guidance for
institutions supervised by the four banking agencies and a policy statement for
institutions supervised by the Securities and Exchange Commission.
Comments on the revised statement are requested within
thirty days of publication in the Federal Register, expected shortly. The revised proposed statement is attached.
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Attachment
Media Contacts:
Federal Reserve Deborah Lagomarsino 202-452-2955
FDIC David
Barr 202-898-6992
SEC John Heine 202-551-4123
OCC Kevin Mukri 202-874-5770
OTS Chris Smith 202-906-6677