I wonder if ______ is an extremely optimistic person or in a cocoon of senior management denial
Banks lending money to governments to help fund bank bailouts looks horribly circular
March 2008
by Alex Chambers and Jethro Wookey
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Two SIVs endured very different fates in February. On February 21, Dresdner Bank announced plans to shore up its K2 vehicle, providing liquidity support to the $19 billion vehicle as it restructures. But parent company Allianz has confirmed its plans to wind the vehicle down by the year-end. K2 runs three portfolios, one of which has entered a restricted operating period. Standard Chartered, however, has walked away from its SIV, Whistlejacket, which entered receivership on February 11 and was teetering on the brink of default by February 21.
Euromoney: It seems banks’ treasurers are becoming less concerned about paying up for liquidity. As Keynes said: ‘The market can stay irrational for longer than you can stay solvent’ Banker: And maybe the market is being rational...
Gallows humour from a senior European FIG banker