Wednesday, December 12, 2007

SEC to Check Corporate Disclosure to Investors on Subprime Mess

Dec. 12, 2007 (Associated Press) -- WASHINGTON - Federal regulators will scrutinize corporate financial reports to be sure they give investors adequate information on the impact of deteriorating conditions in mortgage and credit markets, a top Securities and Exchange Commission official said Monday.

In remarks to the American Institute of Certified Public Accountants, SEC Commissioner Kathleen Casey said corporate disclosure on mortgage and credit market conditions will be scrutinized in the course of normal SEC staff reviews of quarterly and annual corporate reports.

Securities and loans tied to riskier "subprime" borrowers, collateralized debt obligations, commercial paper exposure and market conditions will come under scrutiny, with particular attention paid to disclosure regarding off-balance sheet items and liquidity, said Casey. She gave the usual disclaimer that she was speaking for herself, not the SEC. READ ON->

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