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Bank deleveraging has barely started

Bank deleveraging has barely started

Banks lending money to governments to help fund bank bailouts looks horribly circular

No. 6: If you don’t give it to me you’ll only lend it to someone else and look where that got us

Tuesday, July 1, 2008

US Convertibles - End of H1 2008





Bookrunner Value $m Deals % Share
1 Banc of America 10,364 19 20.3
2 Citi 8,822 18 17.3
3 Lehman Brothers 8,174 10 16.0
4 JPMorgan 6,332 21 12.4
5 Goldman Sachs 5,930 15 11.6
6 Wachovia 2,297 5 4.5
7 Merrill Lynch 2,097 15 4.1
8 Morgan Stanley 1,815 13 3.6
9 Credit Suisse 1,734 10 3.4
10 Deutsche Bank 1,510 7 3.0
Total 51,134 75 100
Source: Dealogic







If you gear up 15 times and fund overnight there is no model in the world that is going to be able to solve that

At least one banker does not subscribe to the view that the meltdown in structured finance was entirely a result of inaccurate modelling

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