Request for Comment on Statement Concerning Complex Structured Finance Activities - District Notice

Board Of Governors, Fdic, Occ, Ots

Informations

• Publié par: Fyon
• Nombre de lectures: 27
• Langue: English

Extrait

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Federal Reserve Bank of Dallas
2200 N. PEARL ST.
DALLAS, TX 75201-2272
May 21, 2004
Notice 04-28
TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Request for Comment on Statement Concerning
Complex Structured Finance Activities
DETAILS
The Board of Governors, Office of the Comptroller of the Currency, Office of Thrift
Supervision, Federal Deposit Insurance Corporation, and Securities and Exchange Commission
have requested public comment on a proposed interagency statement concerning the complex
structured finance activities of financial institutions (national and state banks; bank holding
companies; federal and state savings associations; savings and loan holding companies; and
SEC-registered broker-dealers and investment advisors) supervised by the agencies.
As recent events have highlighted, a financial institution may assume substantial
reputational and legal risk if the institution enters into a complex structured finance transaction
with a customer and the customer uses the transaction to circumvent regulatory or financial
reporting requirements, evade tax liabilities, or further other illegal or improper behavior. The
proposed interagency statement describes the types of internal controls and risk management
procedures that the agencies believe are particularly effective in assisting financial institutions to
identify and address the reputational, legal, and other risks associated with complex structured
finance transactions. The statement, among other things, provides that financial institutions
should have effective policies and procedures in place
•t o identify those complex structured finance transactions that may involve
heightened reputational and legal risk,
For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office [phone]; El Paso Branch Intrastate [phone], Interstate [phone];
Houston Branch Intrastate [phone], Interstate [phone]; San Antonio Branch Intrastate [phone].- 2 -
•t o ensure that these transactions receive enhanced scrutiny by the institution, and
•t o ensure that the institution does not participate in illegal or inappropriate
transactions.
The Board must receive comments regarding the statement on or before June 18,
2004. Comments regarding the information collections contained in the statement should be
received on or before July 19, 2004. Please address comments to Jennifer J. Johnson, Secretary,
Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W.,
Washington, DC 20551. Also, you may mail comments electronically to
[e-mail]. All comments should refer to Docket No. OP-1189.
The public can also view and submit comments on proposals by the Board and other
federal agencies from the www.regulations.gov web site.
AT TACHMENT
A copy of the Board’s notice as it appears on pages 28980–91, Vol. 69, No. 97 of the
Federal Register dated May 19, 2004, is attached.
MORE INFORMATION
For more information, please contact Bobby Coberly, (214)-922-6209 or Randy
Steinley, [phone], Banking Supervision Department. Paper copies of this notice or previ-
ous Federal Reserve Bank notices can be printed from our web site at www.dallasfed.org/
banking/notices/index.html.28980 Federal Register/Vol. 69, No. 97/Wednesday, May 19, 2004/Notices
place to identify those complex document number. All comments DEPARTMENT OF THE TREASURY
structured finance transactions that may received will be posted without change
Office of the Comptroller of the involve heightened reputational and to http://www.ots.treas.gov/
Currency legal risk, to ensure that these pagehtml.cfm?catNumber=67&an=1,
transactions receive enhanced scrutiny including any personal information
[Docket No. 04–12]
by the institution, and to ensure that the provided.
Docket: For access to the docket to institution does not participate in illegal Office of Thrift Supervision
read background documents or or inappropriate transactions.
[No. 2004–27] comments received, go to http://DATES: Comments regarding the
www.ots.treas.gov/Statement should be received on or FEDERAL RESERVE SYSTEM
pagehtml.cfm?catNumber=67&an=1. In before June 18, 2004. Comments
[Docket No. OP–1189] addition, you may inspect comments at regarding the information collections
the Public Reading Room, 1700 G Street, contained in the Statement should be
FEDERAL DEPOSIT INSURANCE NW., by appointment. To make an received on or before July 19, 2004.
CORPORATION appointment for access, call (202) 906–
ADDRESSES:
5922, send an e-mail to OCC: You may submit comments,
SECURITIES AND EXCHANGE [e-mail], or send a identified by Docket number 04–12 by
COMMISSION facsimile transmission to (202) 906–any of the following methods:
7755. (Prior notice identifying the [Release No. 34–49695; File No. S7–22–04] E-mail address: http://
materials you will be requesting will [e-mail].
Interagency Statement on Sound assist us in serving you.) We schedule Fax: [phone].
Practices Concerning Complex appointments on business days between Mail: Office of the Comptroller of the
Structured Finance Activities 10 a.m. and 4 p.m. In most cases, Currency, 250 E Street, SW., Public
appointments will be available the next Reference Room, Mail Stop 1–5,
AGENCIES: Office of the Comptroller of
business day following the date we Washington, DC 20219. the Currency, Treasury (OCC); Office of
Hand Delivery/Courier: 250 E Street, receive a request.
Thrift Supervision, Treasury (OTS); Board: You may submit comments, SW., Attn: Public Reference Room,
Board of Governors of the Federal identified by Docket No. OP–1189, by MailStop 1–5, Washington, DC 20219.
Reserve System (Board); Federal Deposit any of the following methods: You may review the comments received
Insurance Corporation (FDIC); and
• Board’s Web Site: http://by the OCC and other related materials
Securities and Exchange Commission www.federalreserve.gov. Follow the by any of the following methods:
(SEC). instructions for submitting comments at Viewing Comments Personally: You
ACTION: Notice of interagency statement http://www.federalreserve.gov/may personally inspect and photocopy
with request for public comment. generalinfo/foia/ProposedRegs.cfm. comments received at the OCC’s Public
• Federal eRulemaking Portal: http//Reference Room, 250 E Street, SW.,
SUMMARY: The OCC, OTS, Board, FDIC, www.regulations.gov. Follow the Washington, DC. You can make an and SEC (collectively, the Agencies) are instructions for submitting comments. appointment to inspect comments by requesting public comment on a
• E-mail: calling (202) 874–5043. proposed interagency statement [e-mail]. Viewing Comments Electronically:
concerning the complex structured Include docket number in the subject You may request copies of comments
finance activities of financial line of the message. received for a particular docket via e-
institutions (national and state banks; Fax: [phone] or (202) 452–mail or CD-ROM by contacting the
bank holding companies; federal and 3102. OCC’s Public Reference Room at
state savings associations; savings and
• Mail: Jennifer J. Johnson, Secretary, http://[e-mail].
loan holding companies; and SEC- Board of Governors of the Federal OTS: You may submit comments,
registered broker-dealers and Reserve System, 20th Street and identified by No. 2004–27, by any of the
investment advisors) supervised by the Constitution Avenue, NW., Washington, following methods:
Agencies. As recent events have DC 20551.
• Federal eRulemaking Portal: http://
highlighted, a financial institution may All public comments are available www.regulations.gov. Follow the
assume substantial reputational and from the Board’s Web site at http://instructions for submitting comments.
legal risk if the institution enters into a www.federalreserve.gov/generalinfo/
• E-mail:
complex structured finance transaction foia/ProposedRegs.cfm as submitted, [e-mail]. Please
with a customer and the customer uses except as necessary for technical include No. 2004–27 in the subject line
the transaction to circumvent regulatory reasons. Accordingly, your comments of the message, and include your name
or financial reporting requirements, will not be edited to remove any and telephone number in the message.
evade tax liabilities, or further other identifying or contact information.
• Fax: [phone].
illegal or improper behavior. The Public comments also may be viewed
• Mail: Regulation Comments, Chief
proposed interagency statement electronically or in paper form in Room Counsel’s Office, Office of Thrift
(Statement) describes the types of MP–500 of the Board’s Martin Building Supervision, 1700 G Street, NW.,
internal controls and risk management (C and 20th Streets, NW.) between 9 Washington, DC 20552, Attention: No.
procedures that the Agencies believe are a.m. and 5 p.m. on weekdays. 2004–27.
particularly effective in assisting FDIC: Written comments should be
• Hand Delivery/Courier: Guard’s
financial institutions to identify and addressed to R