State Street faces $22 Bil exposure to conduits: report

Discussion in 'Wall St. News' started by Cdntrader, Aug 28, 2007.

  1. State Street faces exposure to conduits: report
    Tuesday August 28, 1:56 am ET

    NEW YORK (Reuters) - Institutional money manager State Street Corp (NYSE:STT - News) faces $22 billion exposure to asset-backed commercial paper conduits, the off-balance sheet vehicles that have caused problems for rivals in recent weeks, British newspaper The Times reported.

    The Boston-based bank has credit lines to at least six conduits, which account for 17 percent of its total assets, the paper said, citing regulatory filings.

    The conduits are packages of retail and commercial loans financed by short-term debt raised in the commercial paper market, the report said.

    Investors have increasingly worried about the conduits amid fears that banks will have to fund the debt from their own balance sheets if these vehicles cannot sell on their maturing paper, the report said.

    State Street's percentage makes it the most highly exposed bank to conduits among its European and American peers, the report added.

    State Street spokespersons did not immediately return calls for comment.
  2. people keep moaning that subprime is a boring issue and that its all over.

    well believe it or not as i pointed out in earlier threads this' infection' of the system is spreading.

    when the stock markets wake up to the fact that the us investments banks are probably bankrupt then stocks may start to go down.

    most of these assets are all leveraged and inter related and not worth a penny.

    siv lites according to barclays capital were leveraged between 40 and 70 times.

    this whole mess is an absolute farce and the funds , investments banks and banks that own the so called assets know they are worthless.

    how do you think they made so much money in the last few years.

    add all that together and that will be the total loss they are going to take on this mess.
  3. dhpar


    wow. what an anal-ysis
  4. usual bollocks.

    knock something but dont put anything else up thats better.

    what a obvious pathetic repsonse.

    what an anal-ysis.......

    what a contribution that was you fucking idiot.
  5. dhpar


    haha - u have a problem our little pro.:D
  6. I always love hearing that the market has to "wake up" to something or has to "price in this and that fact". The equity markets have to do nothing and they're a lot smarter in discounting future events that you, me and everybody else combined here on the board. Just follow price and sector action and you will be on the right side.
  7. not really just trying to see what input your making.

    looks like nothing to me.
  8. zdreg


  9. '
    SIV-lites are similar to conduits – packages of commercial and retail loans used by banks and fund managers as collateral to raise short-term debt – but are often leveraged by between 40 to 70 times. Standard SIVs are typically leveraged 12 to 16 times. Mr Cahill was instrumental in developing the SIV-lite structure. His group is thought to have created as many as 15 of the vehicles. '