Twenty years ago companies were preparing for voluntary measures put forth by industry groups.
“As part of ongoing efforts by OTC financial (especially derivative) market participants to police themselves, ISDA and several other US financial associations working with the Federal Reserve Bank of New York have drafted a “Wholesale Transactions Code of Conduct.”
So wrote International Treasurer in February 1995, following a series of derivative debacles, including Gibson Greetings and P&G. While the measures were a serious attempt at self-regulating, treasurers were encouraged to not rely too much on the word of a counterparty. “…[c]aveat emptor rules prevail over professional courtesy…”and “To avoid confusion, never construe any communications, written or oral, received from a counterparty as reliable financial advice.”
Caveat emptor and “trust but verify” should always be top of mind.