There is still vast uncertainty about how much toxic debt remains, and who owns it.
And everybody from mortgage brokers and appraisers to investment bankers bundling toxic debt were perfectly entitled to their systematic avarice.
For over a year, since August 2007, central bankers, principally Mr Bernanke, have been trying to make this toxic debt liquid.
There are massive debt issues with toxic debt around the world.
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The package allows Norwegian banks to swap toxic debt products like mortgage-backed securities for new government bonds, which can then be used as collateral for borrowing from the central bank.
The toxic debt that was held by the private sector before the crisis has now been transferred to sovereign balance sheets as well as those of global central banks.
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Government sources point out, though, that the amount of toxic debt being insured under APS is smaller than first estimated and RBS will take on a bigger share of potential losses.
Even as they were professing their purity to the SEC in response to Mr. Cutler's call, many firms turned out to be enticing ignorant borrowers into taking out mortgages they couldn't afford, unloading portfolios of toxic debt on unsuspecting clients and manipulating one of the world's most widely used interest rates for their own benefit.
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The bank restructuring will include the country's troubled second largest lender, Laiki, which suffered heavy losses after being exposed to toxic Greek debt.
Chinese banks were not, in the main, exposed to toxic Western debt and, perhaps more importantly, never adopted dangerous Western methods of hiding risks.
But Communities and Local Government Minister Grant Shapps rejected the opposition's charges and accused Labour of leaving the coalition a "toxic legacy of debt" under their "scorched earth policy".
But a toxic combination of external debt and collapsing confidence left the economy floundering.
Bankers are keen not to be left holding a toxic tranche of unsellable debt if the credit cycle turns.
These two were special purpose vehicles, a sort of independent holding company, that the New York Fed created to ring fence toxic residential mortgage backed securities and collaterized debt obligations in the heat of the crash.
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Until America and Europe own up to the true magnitude of the problem and sort bad debt from good to get toxic liabilities off financial-industry balance sheets, no amount of talking or stimulus will mend the global downturn, he warns.
Hey presto: toxic mix of weak banks, rising unemployment and government debt increasing even faster than the OBR expects.
Nor have investors grown any more confident about their ability to price the banks' toxic mortgage-backed assets: Merrill Lynch's cut-price sale of collateralised-debt obligations in July has had few imitators.
And Madrid is not alone, as Italy, Ireland, and even Greece successfully placed debt over the past few days, indicating increased investor appetite for what once were toxic securities.
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Citi remains heavily exposed to housing drag with toxic assets souring the balance sheet, and there still could be substantive blowback for big banks holding bad European government debt.
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