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.