Synthetic Securitizations and Derivatives Under Federal Reserve Regulation W

Provided by: Goodwin Procter
Topic: Software
Format: PDF
Securitization structures typically involve transfers of assets between a bank and its subsidiaries and may also involve other transactions with entities that control the bank or are under common control with the bank. This article talks about Regulation W, which requires banks to establish and maintain policies and procedures that are reasonably designed to manage the credit exposure arising from their derivative transactions with their affiliates and also requires banks to impose credit limits on their derivative exposure to affiliates that are at least as strict as the credit limits that they impose on unaffiliated companies that are engaged in similar businesses and are substantially equivalent in size and credit quality as the affiliated counterparties.

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