BoE warns banks on derivatives booking practices
Dealers must simplify if there is "no coherent rationale" to structures
The Bank of England (BoE) has warned banks to book trades to their various legal entities in a simple, coherent way, citing lessons learned during the collapse of Lehman Brothers. Messy booking practices could make it harder for authorities to quickly resolve stricken banks, the BoE fears.
While many firms have improved their structures and controls since 2008, says Megan Butler, executive
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