Tuesday, 28 August 2007

Subprime toxicity reaches Singapore shores


So, one of DBS bank's off-balance sheet structure has difficulty finding investors. The bank had to inject emergency funds owning to the turmoil created by the sub-prime crisis in the U.S.
The bank had no obligatory provision set up initially as it thought that the structure would be funded wholly by investors. I guess now they are sitting on a pile of loans which nobody wanted and a chunk of credit risk which they did not factor into their books.

No comments: