From FT Alphaville:
You’re a big bank. Things got tough. Looks like they’re getting tougher. While everyone around you was losing their head… you lost yours too. And now you’re buried in a mortgage-backed train-wreck. Worse - here’s the clincher - other banks hedged to the hilt and now no one will hedge any more. Shorting the ABX costs the earth. How do you offset those big CDO writedowns?
Buy a Chinese bank!Bank of America announced on Tuesday that it was sitting on a potential gain of more than $30bn...MORE