Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC) and other US banks are seeking investor disclosure regarding potential leverage if and when they invest in significant risk transfers, Bloomberg reported Friday, citing people with knowledge of the matter.
US authorities have raised concerns over the use of leverage by investment firms that want to buy significant risk transfers, a deal that enables banks to transfer risks tied to their loan portfolios to another bank, according to the report.
The three banks did not immediately reply to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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