Thursday, August 28, 2008
Another Wachovia Shoe Drops
"A unit of Wachovia Corp. that sold insurance against defaults on mortgage-backed securities is being liquidated in Bermuda and is asking a U.S. court to protect its assets here. ... The company is asking the U.S. Bankruptcy Court in Manhattan to recognize the Bermuda proceeding so it can liquidate there. If approved, creditors will be blocked from seizing assets in the U.S. ... BluePoint provided a type of insurance, known as credit default swaps, against defaults of asset-based securities", David McLaughlin at the WSJ, 15 August 2008.
One more shoe falls off Wachovia's truck. There's more where this came from.