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

On May 15, 2006, the New York office authored an Alert Memorandum entitled, “U.S. Banking Regulators and SEC Issue Revised Proposed Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Transactions”. This alert briefly summarizes the revised “Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities” recently published 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 revised interagency statement addresses key concerns noted by public commenters in response to an earlier proposed interagency statement.