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Home » Basel Report Recommends Stronger Risk Management by Firms Issuing and Investing in Special-Purpose Entities
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Basel Report Recommends Stronger Risk Management by Firms Issuing and Investing in Special-Purpose Entities

October 2, 2009
Special-purpose entities, structures that are widely used in the MBS and ABS market, aren’t intrinsically bad, but poor management practices and a lack of transparency led to significant problems during the financial market meltdown, according to a new report on SPEs released this week by the Basel Committee on Banking Supervision. “It must be emphasized that the usage of SPE structures is...
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