Dealers hit out at US structured product proposal
Financial institutions are increasingly concerned about a multilateral proposal by the primary US federal banking and securities agencies aimed at offering best-practice guidelines on their use of complex structured finance. They are fearful the proposals will lead to the effective regulation of the structured products market.
But Kathryn Dick, deputy comptroller of the Office of the Comptroller of the Currency (OCC) at the US Treasury, defends the proposal issued on May 13, noting that it is open for comment and stressing it is not a regulation. The OCC, the Board of Governors of the Federal Reserve System and the Securities and Exchange Commission (SEC) instigated proceedings following investigations and actions taken against dealers associated with dubious structured product transactions for Enron.
However, the
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