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Fed's Bies: Financial innovation & risk management

In a speech on 'Financial Innovation and Effective Risk Management' given on 6 May, Susan Bies of the Federal Reserve said banks should take care to safeguard their reputations when considering whether to be involved in complex deals aimed at helping corporate clients take advantage of accounting and tax loopholes.

"When banking organizations provide advice on, arrange, or actively participate in complex structured finance transactions, they may assume legal and reputational risks if the end

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