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A new show that aired in Britain on Monday and claimed to unravel the mysteries behind the global financial crisis, may look a little awkward once it gets to the bit about tax-evasion and dodgy, off-balance sheet funds.
The focus of the fund would be structured investment vehicles, off-balance sheet funds created by banks and which issue short-term debt such as commercial paper to acquire and finance specific longer-term assets, recently subprime mortgage-backed securities and similar assets.
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We need to outsource our balance sheet funding".
"These include the potential unwinding of off-balance sheet funding structures, such as conduit structures," Mr. Sirri said.
The point is that BofA receives multi-billion dollar "too big to fail" subsidies from US taxpayers just to keep the lights on and a colossal $2 trillion balance sheet funded every day, the same balance sheet that has no room to hold some project finance loans 80percentt guaranteed by, you guessed it, the taxpayers.
Its capital position could be challenged if the bank must bring the assets held by such off-balance-sheet funds back onto its balance sheet.
The Boston Globe reported this week that a senior staff member for Senator Scott Brown has been pushing for a relaxation of crucial Dodd-Frank provisions, particularly with regard to how big banks are allowed to invest in various off-balance-sheet funds.
In a regulatory filing last week, Citi said it had received subpoenas and information requests relating to subprime mortgages, mortgage securities, derivatives and off-balance-sheet funds.
There are many risks, but Mr Lewis's prediction that Merrill would come to be seen as "a thing of beauty" no longer looks risible.The deal gave Merrill access to a giant balance-sheet funded with stable deposits.
There are many risks, but Mr Lewis's prediction that Merrill would come to be seen as "a thing of beauty" no longer looks risible.In this section Moynihands full Sukuk it up Markets for minnows You can't keep 'em down Twin peaks Marjorie Deane internship ReprintsThe deal gave Merrill access to a giant balance-sheet funded with stable deposits.
On the other side of the balance sheet, the funds have short-term financing from multiple sources.
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