The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Wednesday, October 8: The financial structure has changed. Looking into the black hole

What now is the model for hedge funds, finance companies and the former users of the securitization markets?

The week Wall Street capitulated


"The financial structure has changed, ending credit-led financing and disintermediation, and into a funded model"

Wednesday, October 8: The US Treasury hints it is considering injecting capital into banks

Wednesday, October 8: The US Treasury hints it is considering injecting capital into banks

For the first time, US Treasury Secretary Paulson opens up the possibility of government directly injecting capital into financial institutions. As ever, it is all talk and no action. The tailspin continues... The day started with meetings with two US mortgage market specialists. "We don’t know what the endgame is," one said with brutal honesty. The other pointed out that the rate at which US household debt fell in the second quarter was outright deflationary. And that leverage in the non-financial sector was increasing. Net debt had fallen in the period from 2002 until 2006 but 2007 was a record year for gross corporate issuance. Now these institutions were tapping their credit lines.

At another encounter, the same bank’s chief economist noted the momentous backdrop.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree