Financial Times FT.com

Bankers debate asset pools and arbitrageurs

By Krishna Guha in Jackson Hole

Published: August 25 2008 03:00 | Last updated: August 25 2008 03:00

Banks may have to pool their troubled mortgage assets into giant special resolution vehicles in order to ring-fence past problems and help to restart the financial markets, some central bankers believe.

Such vehicles would be similar in some respects to the aborted "super-SIV" proposed by some US banks with Treasury backing last year. Governments could provide financial support if needed in return for a share in potential profits once the assets were liquidated.

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