Due Diligence

SEC Creates New Office To Catch Tomorrow's CDOs

The SEC doesn't want any more newfangled products dreamt up by math whizzes on Wall Street to slip through the regulatory cracks. You know, like those mortgage-backed CDOs that messed everything up in 2008 and 2009. And so, it's creating three new specialized offices in the Division of Corporation Finance that will focus on large financial institutions, asset-backed securities and other structured products, and securities offering trends, the regulator said today in a release.

The three new offices are: A disclosure review office that will expand the Division's enhanced reviews of large financial services companies; An office focused exclusively on disclosure reviews and policy-making for asset-backed securities and other structured finance products; An office that will review new securities products and capital markets trends and develop recommendations for changes to enhance investor protection in securities offerings.

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