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As you know I do not like Investment banks, as I cannot see how their corporate model will work without large amounts of derivative trading etc. However, it would appear that reality is finally arriving as to their finances, and hopefully all I banks will follow MER's example.

The one point that I find galling is selling the debt at 22% of face, and then financing 75% of the transaction value, this is moronic and effectively its just playing for time, to rebuild its balance sheet and credibility.