Publications and Presentations
August 26, 2008

Kaye Scholer Issues Covered Bond Alert

NEW YORK – Kaye Scholer LLP announces the issuance of its Covered Bond client alert, "United States Department of Treasury Releases Best Practices for Residential Covered Bonds." The firm will release further alerts to keep clients apprised of developments in the Covered Bonds area.

On July 28, 2008, the United States Department of Treasury released "Best Practices for Residential Covered Bonds" to provide guidelines for issuers of Covered Bonds in the United States. The guidelines, together with the July 15, 2008 publication of the Federal Deposit Insurance Corporation, "Final Covered Bond Policy Statement," are intended to provide greater certainty as to the treatment of Covered Bonds issued in the United States. Although the guidelines are limited to Covered Bonds backed by residential mortgages and, to a limited extent, AAA-rated residential mortgage-backed securities, the guidelines specifically state that it is expected that additional asset classes will back Covered Bonds as the market develops. Kaye Scholer's client alert discusses specifics of the Department of Treasury's guidelines and the FDIC's Policy Statement.

Henry Morriello, Co-Chair of the firm's Structured Finance Practice Group, stated, "We are very pleased to release this alert, and look forward to issuing others, in an effort to provide our clients with the latest and most cutting-edge advice on the new structures utilized by banks to tap the capital markets for liquidity."

About Kaye Scholer LLP

Kaye Scholer's Covered Bond Group is a team of structured finance attorneys focused on solutions for the market's current liquidity issues. Members of the team have extensive experience in diverse areas such as structured vehicles, complex finance, derivatives, tax, securities regulation and restructuring. These dedicated lawyers are on the forefront of the resolution of complex structured transactions and are recognized as leaders in commercially-driven solutions to illiquid markets.

Kaye Scholer refers to Kaye Scholer LLP and its affiliates, with offices in Chicago, Frankfurt, London, Los Angeles, New York, Shanghai, Washington, DC, and West Palm Beach. Founded in New York City in 1917, Kaye Scholer now includes more than 500 attorneys and represents public and private companies, governmental entities, financial institutions, and other organizations in matters around the world.

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