Has Southwark Council invested in CDOs, SIVs, and suchlike?

[macroban]

A question for forum members who work in "The City".

[macroban]

Nothing to do with East Dulwich.

Right?

[macroban]

Well?

[KalamityKel]

*awaits in anticipation for a "representative" to speak up*

[Peckhamgatecrasher]

I'm pretty useless with acronyms (that is, I can amuse myself with what they might mean). What are CDOs and SIVs?

[Jeremy]

They are both "structured products", designed to make a profit based on debts.

Collateralized Debt Obligation - sort of a packaged up collection of various debts which is sold on to an investor.

Structured Investment Vehicle - a combination of borrowing short term at low interest and lending longer term at high interest, which is again packaged up for investors.

Macroban - surely you're aware that bank employees aren't allowed to discuss their clients' trading activity? In fact, a lot of banks keep this data hidden from many of the employees.

[Peckhamgatecrasher]

Thanks Jeremy. None the wiser!

[KalamityKel]

Jeremy Wrote:

>

> Macroban - surely you're aware that bank employees

> aren't allowed to discuss their clients' trading

> activity? In fact, a lot of banks keep this data

> hidden from many of the employees.

Also a lot don't Jeremy ;-)

[EDOldie]

Surley the councils have a bit of a Dali Lama here. One the one hand if they invest wisely and keep our tax bills down we are grateful but if they stick it all in an Icelandic bank and it goes pear shaped we are all tearing them apart.

Bring back Camberwell Borough Council I say, they'd have put it all in the Peckham Building Society.