US banks wary of disclosing fair value for structured notes

letter to the editor

Documents made public by the US Securities and Exchange Commission (SEC) last week show that big banks were initially wary of requests from the US regulator to provide the fair value of their structured notes to investors. In April 2012, the SEC sent letters to nine Wall Street banks asking them to improve disclosure surrounding their structured notes, including providing investors with additional information about their exposure to banks' credit risk when they buy the notes. After banks resp

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