Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities — 2006-05-16 [06-4510]

On May 19, 2004, the Agencies issued and requested comment on a proposed Interagency Statement on Sound Practices Concerning Complex Structured Finance Activities ("Initial Statement") of national banks, state banks, bank holding companies, Federal and state savings associations, savings and loan holding companies, U.S. branches and agencies of foreign banks, and SEC registered broker-dealers and investment advisers (collectively, "financial institutions" or "institutions"). The Initial Statement described some of the internal controls and risk management procedures that may help financial institutions identify, manage, and address the heightened reputational and legal risks that may arise from certain complex structured finance transactions ("CSFTs"). After reviewing the comments received on the Initial Statement, the Agencies are requesting comment on a revised proposed interagency statement ("Revised Statement").