Banks split on disclosure

Author: | Published: 1 Dec 2008

US banks issuing FDIC-guaranteed bonds are divided over the disclosures that they should be providing. And their differences have led to refusals to underwrite each other's offerings.

Since the end of November, both Goldman Sachs and JP Morgan have issued euro-denominated guaranteed debt totalling €3 billion, with JP Morgan also tapping the UK market for £600 million of FDIC-backed bonds.

According to sources close to the banks, Goldman...