It does not help that insurers have lost their appetite for insuring private equity, after some well-publicised write-downs on banks' private-equity portfolios.

ECONOMIST: Using alchemy to turn high-risk equity into bonds

Banks have spent the past year shoring up their balance sheets but, after some big losses, investors have lost their appetite for more share issues.

ECONOMIST: Financial services

David Olson of the research firm Wholesale Access says Wall Street investors have lost their appetite for the loans and want companies like New Century to buy them back.

NPR: Big Subprime Lender Files for Bankruptcy