Brilliant idea:
Wall St banks to ring-fence bad assets http://ftalphaville.ft.com/blog/2008/04/03/12025/wall-st-banks-to-ring-fence-bad-assets/
Wall St banks to ring-fence bad assets.
Wall Street banks are drafting plans to separate troubled assets from the rest of their businesses in efforts to ring-fence problems and restore confidence in the financial sector. A number of US firms are looking to follow the example set by UBS, which this week put securities linked to US mortgages into a separate subsidiary with a view to reducing its exposure to the troubled assets, which have been responsible for more than $30bn of losses so far.
The banks – among them Lehman Brothers - aim to move at least some troubled assets off their balance sheets by selling large stakes in the funds to outside investors.
Translation:
Its a bit like keeping your house, but persuading a mate to have the mortgage...