Financial Times FT.com

Private equity

Banks remain exposed to risk after debt sales

By Henny Sender in New York

Published: August 12 2008 22:25 | Last updated: August 12 2008 22:25

Citigroup and Deutsche Bank are still retaining some of the risk from billions of dollars in loans backing leveraged buy-out deals that they have sold in recent months to private equity firms, according to securities filings and bank officials.

The sales were cheered by the investors as a sign the banks were cleaning up their balance sheets. But the banks’ remaining exposure to the loans is less well understood, in part, because of the lack of public disclosure.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this