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Five French banks setting up liquidity conduit : report
NEW YORK (Reuters) - A group of French banks are setting up an investment fund to bail out small and midsize asset managers if there is a liquidity shortage, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The banks, which include BNP Paribas SA <BNPP.PA>, Societe Generale <SOGN.PA>, Natixis <CNAT.PA>, Credit Agricole SA's <CAGR.PA> Calyon and the French unit of HSBC Holdings PLC <HSBA.L>, have been working since this summer to create the conduit so that if liquidity dried up and investors wanted to withdraw their assets, the fund could prevent a fire sale by offering to buy those assets, the Journal said.
While the value of the conduit is not yet known, the banks would put about $1.47 billion of their own asset-backed securities into it, the Journal reported.
(Reporting by Emily Chasan)
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