U.S. Banking Regulators and SEC Issue Final Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Transactions

On February 13, 2007, the New York office authored an alert memorandum entitled “U.S. Banking Regulators and SEC Issue Final Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Transactions.” The alert memo briefly summarizes the final “Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities” recently adopted by the United States federal banking agencies and the Securities and Exchange Commission. The interagency guidance addresses financial institutions’ internal controls and risk management processes for “elevated risk complex structured finance transactions”. The revisions incorporated in the final interagency statement were mostly in the nature of clarifications. A copy of the revised interagency statement can be accessed through the following link:  http://www.sec.gov/rules/policy/2007/34-55043.pdf.