US regulators outline rules on structured finance
Five US regulatory organisations have issued a statement of principles on dealing with the risks involved in complex structured financial products.
The Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission started drawing up the guidelines in 2004, in response to the failure of Enron.
The regulators warned that companies should consider products "elevated risk" if they seemed to be intended not to serve business objectives, but to deceive auditors or investors. In particular, they warned against "circular
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