Board of Governors of the Federal Reserve System
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The Office of the Superintendent of Financial Institutions (OSFI) Canada and the Board of Governors of the Federal Reserve System in the United States today announced they have reached an agreement with the Canadian Imperial Bank of Commerce (CIBC). The agreement is part of coordinated actions between OSFI and U.S. regulatory and enforcement authorities related to CIBC's involvement in certain structured finance transactions with the Enron Corporation, Houston, Texas. The agreement with OSFI and the Board is specifically focused on the particular structured finance transactions entered into by CIBC with Enron and requires CIBC to adopt remedial policies and procedures, some of which are already in place. The agreement covers certain types of complex, structured financial transactions, and year-end and quarter-end transactions, with U. S. corporations registered under the Securities and Exchange Commission Act of 1934, and any affiliates. The U.S. Securities and Exchange Commission and the U.S. Department of Justice are also announcing Enron-related actions against CIBC today. As part of its supervisory action, OSFI is separately requiring that CIBC adopt similar enhanced reputational risk management policies in its worldwide operations. Created in 1987 by an Act of Parliament, OSFI has a mandate to protect the rights and interests of depositors, policyholders and pension plan members, and to advance and administer a regulatory framework so as to contribute to public confidence in the Canadian financial system. The Federal Reserve, the U.S. central bank, shares responsibility with other U.S. and state authorities in overseeing the operations of foreign banking organizations in the United States. |