Financial Times FT.com

Auction-rate bond holders seek government help

By Aline van Duyn in New York

Published: October 21 2009 05:31 | Last updated: October 21 2009 05:31

The failure of private-sector efforts to thaw some $85bn in illiquid auction-rate securities backed by student loans is pushing a group of US corporate treasurers to press for help from the US government.

Since the $330bn auction-rate securities (ARS) market collapsed more than 18 months ago, there has been a debate as to who should shoulder the resulting losses.

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