Financial Times FT.com

Why financiers have missed the new monster

By Gillian Tett

Published: September 7 2007 03:00 | Last updated: September 7 2007 03:00

Generals are trained to fight the last war. So, too, with financiers. In the past decade - or ever since Long-Term Capital Management imploded - the banking world has devoted commendable effort to worrying about hedge fund collapses.

But while risk managers have been obsessively watching hedge funds, another problem has been brewing, unnoticed - conduits and structured investment vehicles.

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