Newsletter Jan 2007: US agencies issue final guidance on complex deals

WASHINGTON – After almost three years of discussion, five US regulatory agencies have issued their final guidance for firms involved in complex structured financial transactions (CSFTs). The final guidance, referred to by the agencies as a “final statement,” is substantially similar to the revised proposed guidance that they issued last May. It takes a risk- and principles-based approach to addressing the risks that CSFTs may pose to banks and other financial institutions, and focuses on those types of transaction that may present elevated levels of legal or reputational risk to those involved in them.