Thursday, August 9, 2007

BNP freezes $2.2 bln of funds over subprime

France's biggest listed bank, BNP Paribas froze 1.6 billion euros ($2.2 billion) worth of funds on Thursday, citing the U.S. subprime mortgage sector woes that have rattled financial markets worldwide.

The move could add to the disasters that are looming for investors in the underlying hedge funds, whose ability to liquidate their holdings has been removed. While the ultimate impact will depend on the terms of the underlying investment, having your ability to sell your investment suspended can never be viewed as a good thing.
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