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Strategies & Market Trends : Anthony@Pacific & TRUTHSEEKER Expose Crims & Scammers!!!
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From: ravenseye10/23/2007 12:35:05 PM
   of 5673
 
Wall Street superfund: Not so super
A group of big banks has a plan to invest in mortgage debt, but doubts are growing over whether it will calm the markets.
By Grace Wong, CNNMoney.com staff writer
October 22 2007: 2:01 PM EDT
LONDON (CNNMoney.com) -- A week after a Wall Street consortium said it would form a fund to buy mortgage-backed debt, doubts are growing over whether the plan will offer any swift relief to the beleaguered credit markets....
money.cnn.com
...But many critics, including former Federal Reserve chairman Alan Greenspan, are worried that by propping up the market, the fund could do more harm than good.

Some investors are skeptical of the superfund, saying it is essentially just another SIV and amounts to a bailout for banks....

...Many banks, most notably Citi, have set up SIVs or agreed to backstop these vehicles. Citi's exposure to SIVs alone is estimated at $80 billion. The banks behind the plan and Treasury Secretary Henry Paulson have refuted claims that the superfund is a bailout.

Much of the growing doubt over the fund has to do with the lack of details that has been released so far. The banks said they expect to launch the fund before the end of the year, but it's still unclear how it will operate and how much support it has garnered....
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