Team Spirit Team Spirit

we love blogging

Monday 12 November 2007

Buying debt

Pete

The BBC is reporting that three of the top US Banks are close to agreeing to create a super fund to buy 'debt of weakening value'.

The article reports 'Citigroup, Bank of America and JPMorgan Chase are said to have agreed on the structure of a $75bn (£36bn) scheme that will buy debt of weakening value.'

Each plans to commit $5bn with the remainder coming from other banks and in total is looking to raise $75bn.

However comments are made that while the super fund is a good idea the debt package market is actually worth somewhere in the region of hundreds of billions of dollars.

So far we have lost a CEO here and there but it seems possible we may actually lose Banks as well.

No comments: