UK's FSA Concerned about Sloppy OTC Back-Office Work

By Christopher Faille, Reporter
HedgeWorld.com February 24, 2005

Janet Tavakoli, a consultant and expert witness on structured financial products, said she is surprised the FSA only now is finding out about such delays and uncertainties.

" Ironically," she said, "I can envision a scenario in which customized transactions get signed off on more quickly," than transactions using standardized language as provided by the International Swaps and Derivatives Association's forms. She said she encourages counterparties to rewrite the standard agreements.

" In my experience the one-on-one agreements get signed quickly because the parties are on top of it and the signatories are in charge and are doing the talking, but that" she added, "may not always be the case."


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Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct professor of derivatives at the University of Chicago's Graduate School of Business. She is the author of: Credit Derivatives & Synthetic Structures (John Wiley & Sons, 1998, 2001), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, 2008).

Janet Tavakoli's book on the global financial meltdown is Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley 2009).

Clients of Tavakoli Structured Finance have the benefit of proprietary consultation, which is not available in any other paid or public forum. Clients also commission proprietary research and analysis.

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