thowze

Lehman Follows Good Bank/Bad Bank to Redemption

So it seems that being weak and alive is preferred over being this side of dead. If institutions go this route, there may be plenty of M/A activity in a good old fashion Wall Street predatory manner.

Credit derivative contracts may be a problem. Selling them off to these shell companies could invoke lawsuits from those who sought their protection benefits. I can't see anyone getting out of those. Getting them off the balance sheets is one thing, removing the responsibility is another.