Financial Times FT.com

Sigma collapse ends shadow bank project

By Paul J Davies, Anousha Sakoui and Gillian Tett

Published: October 1 2008 23:09 | Last updated: October 1 2008 23:09

In the context of the string of bank failures, bail-outs and the political battles in Washington in the past month, the collapse last night of the last vehicle from a once $400bn-plus industry might seem a relatively obscure footnote.

But a wind-down of Sigma Finance, the oldest and once the single largest structured investment vehicle, marks the final chapter in an extraordinary project to create a credit industry outside the world of traditional banking.

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