Off-balance sheet arrangements are one of the original culprits of the credit crisis, but they are by no means purely a bank issue. Financial services companies’ losses mushroomed as they were forced, possibly for reputational reasons, to stand behind thinly capitalized off-balance sheet entities. This 10-K season, financial services companies should disclose their structured investment vehicle (SIV is Wall Street jargon for an off-balance sheet arrangement) activities and the associated risks much more thoroughly. All companies should also provide much more thorough disclosure of any off-balance sheet arrangements and any liabilities that could arise from these structures. We at Westlaw Business have compiled a list of resources to assist you as you prepare your 2009 10-Ks.

Published: March 5, 2009