Financial Times FT.com

Banks warned over assets held by subsidiaries

By Jennifer Hughes in London

Published: April 14 2009 22:53 | Last updated: April 14 2009 22:53

International banks will have to hold more assets in their subsidiaries if they want to avoid a re-run of the chaos caused by the fall of Lehman Brothers, according to PwC, administrators for the collapsed bank’s European operations.

The comments come as the UK’s Financial Services Authority is pushing a series of contentious liquidity proposals that would involve UK subsidiaries doing just that.

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