Pierre Pourquery, of Boston Consulting Group, says it is not uncommon for investors tobreak their exotic purchases into smaller pieces in order to feed them into their risk-management systems.
American officials are reluctant to go nuclear and break them up, not least because the task of splitting them into pieces small enough to pose no danger would be horribly messy.
But unlike the other Maiden Lane assets already sold by the Fed, the Triaxx CDO is more of a notorious villain of the 2008 financial crisis and may present more of a challenge for banks looking tobreak it up and sell it off in pieces.
What if it was possible tobreak a complex piece of machinery into a thousand pieces and then, at some predetermined moment, have the machine put itself back together again?
The idea was that new chief executive Ian Read would break the company up into five pieces so that the drug division would be able to grow from a smaller base.