Gillian Tett: Sovereign Debt Could Be The Next Subprime

These days, there is a near-unanimous belief among western regulators that one way to prevent a repeat of the 2007-08 crisis is to stop banks taking crazy risks with subprime mortgage bonds or complex instruments such as collateralised debt obligations (CDOs). Instead, banks are being urged to hold a higher proportion of their assets in the form of "safe" instruments, most notably sovereign or quasi-sovereign debt. G20 regulators are holding regular meetings in Basel to draw up rules on how banks should do this, as part of a wider reform of financial regulation.

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Comments

[Carolab]

The Fed has THREE HUNDRED BILLION in foreign currency swaps!

[dadw5boys]

the fed is a private bank.

[Washington Kos]

Another big rally for stocks as the rich get richer. Great recovery, huh? Unless wall street recovers first there can be no recovery for anyone else . That seems to be the Geithner/Summer/Obammi mantra.

good articles: http://financeopinionss.blogspot.com

the economy & stock market is a joke. Obama let everyone down except the usual water carriers & top 1% of earners. Saying home 2010 & 2012

[dadw5boys]

Your the joke !!!!!!

Banking Officals and Economist are all now admitting that the reported growth from 2001 to 2008 was FALSE !!!!!!!!

THERE WAS NO GROWTH DURING THE BUSH YEARS AT ALL IT WAS A SMOKE SCREEN !!!!!!!!!

BUSH WACKED !!!!!!

[stargazer13]

the headline of this story is an oxymoron !!