Our honourable speakers will shortly present a broader picture – the practices of other countries and regions. We are likely to see that our challenges are not unique: most advanced economies have faced, or are currently facing, similar problems.
MMFs held a large amount of AAA-rated ABCPs of SIVs whose parents were European as well as US banks. These ABCPs were backed by US subprime loans, so that if the subprime loans were downgraded then these ABCPs would also be downgraded. The second vital information is possible side effects of the legal constraints upon the MMFs.