The OSFI and Federal Reserve Board announce agreement with the Canadian Imperial Bank of Commerce.The Office of the Superintendent of Financial Institutions The Office of the Superintendent of Financial Institutions or OSFI is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". (OSFI OSFI Office of the Superintendent of Financial Institutions (Canadian) OSFI Open Standards Fabric Initiative OSFI Open System File Interface ) Canada and the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. in the United States announced, on December 22, 2003, that they have reached an agreement with the Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). (CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company ). The agreement is part of coordinated actions between the OSFI and U.S. regulatory and enforcement authorities related to the CIBC's involvement in certain structured finance transactions with the Enron Corporation, Houston, Texas. The agreement with the OSFI and the Board is specifically focused on the particular structured finance transactions entered into by the CIBC with Enron and requires the CIBC to adopt remedial policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental , 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 also announced Enron-related actions against the CIBC. As part of its supervisory action, the OSFI is separately requiring that the CIBC adopt similar enhanced reputational risk management policies in its worldwide operations. Created in 1987 by an Act of Parliament, the 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. |
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