Bank Credit Risk Rises as Overhaul Legislation Nears Completion
This article is for subscribers only.
The cost to protect against losses on bonds of Goldman Sachs Group Inc. and Morgan Stanley rose as lawmakers negotiate financial-overhaul legislation that may threaten Wall Street revenue.
Credit-default swaps on the banks climbed to the highest in more than a week as members of the U.S. Senate and House of Representatives settle on the final language of legislation, due to be completed as soon as today. Proposals include limits on banks’ trading in over-the-counter derivatives, as well as on how they invest their capital.