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

Bank deleveraging has barely started

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

Tuesday, July 1, 2008

$ Denominated DCM - End of H1 2008





Pos. Bookrunner Parents Deal Value $ (m) No. %share
1 JPMorgan 194,957 642 13.6
2 Merrill Lynch 128,821 887 9.0
3 Citi 121,950 394 8.5
4 Banc of America 120,115 613 8.4
5 Deutsche Bank 92,818 320 6.5
6 Barclays Capital 89,909 358 6.3
7 Lehman Brothers 88,394 412 6.2
8 Goldman Sachs 87,030 219 6.1
9 Morgan Stanley 85,287 421 6.0
10 UBS 78,840 529 5.5
Total 1,433,288 6,916 100.0
Source: Dealogic







This is a profound ethical issue. These are very sophisticated operations where the counterparty was not a hedge fund – it was not even a financial institution. Should a grocery chain be selling volatility protection?

Guillermo Ortiz, central bank governor, lambasts investment banks for entering FX trades with local retailer Comercial Mexicana which led to Mexico’s monetary authority having to raise over $8 billion to cover positions

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