Smothered by red tape

In response to a string of dubious structured finance transactions (remember Enron?), the ever-watchful regulators have proposed a set of guidelines which observers fear could choke the market.

Nearly two years after Congress began investigating the role of banks in the abuse of structured finance products, a group of five regulators has proposed a set of best practice guidelines for institutions involved in these complex transactions. Much of the new guidance will already be largely familiar to the banks most heavily involved in these products, since a number have already adopted many of the changes recommended by federal regulators as a result of the fallout from the Enron