Financial Times FT.com

Tough issues on the table, but outlook is bright for a vital service

By James Mackintosh

Published: January 14 2008 02:00 | Last updated: January 14 2008 02:00

Call it a reverse credit check. Hedge funds used to searching questions from prime brokers about strategy, results and even their personal lives turned the tables last year, questioning the creditworthiness of banks hammered by the subprime mortgage crisis.

Hedge funds presented their bankers with questions unthinkable just 12 months ago: how safe is cash left on deposit? What happens to assets backing loans to a fund if the bank runs into trouble?

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