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December 14, 2007
Big Banks Scale Back Plan to Aid in Debt Crisis
On Dec. 10, following a month of false starts, a new superfund created by banks to keep the housing-related debt crisis from getting worse will start raising money from financial institutions. However, this new entity's role is already being questioned by several of the nation's biggest banks, with Citigroup formulating a separate rescue plan and HSBC and others taking steps to solve its problems internally. Consequently, the new superfund—which was never designed to rescue troubled structured investment vehicles, or SIVs, only to delay their day of reckoning—is looking more and more irrelevant.
Posted by S. Germain at December 14, 2007 07:42 AM