Gee, this sounds strangely - and disturbingly- familiar.....as the coda to 'The Big Short' notes, even as the dust was settling from the GFC, banks already were exploring the sale of CDOs under different names like "bespoke debt tranche instruments." History may not repeat, but it sure does rhyme, which also suggests the WSJ is being somewhat disingenuous in calling this a 'new' thing.
Big Banks Cook Up New Way to Unload RiskBanks are selling risk to hedge funds, private-equity firms through so-called synthetic risk transfers
U.S. banks have found a new way to unload risk as they scramble to adapt to tighter regulations and rising interest rates.
U.S. Bank and others are
selling complex debt instruments to private-fund managers as a way to reduce regulatory capital charges on the loans they make, people familiar with the transactions said.
These so-called
synthetic risk transfers are expensive for banks but less costly than taking the full capital charges on the underlying assets. They are lucrative for the investors, who can typically get returns of around 15% or more, according to the people familiar with the transactions.
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The deals function somewhat like an insurance policy, with the banks paying interest instead of premiums. By lowering potential loss exposure, the transfers reduce the amount of capital banks are required to hold against their loans
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Banks started using synthetic risk transfers about 20 years ago, but
they were rarely used in the U.S. after the 2008-09 financial crisis. Complex credit transactions became harder to get past U.S. bank regulators, in part because similar instruments called credit-default swaps amplified contagion when Lehman Brothers failed.
Regulators in Europe and Canada set clear guidelines for the use of synthetic risk transfers after the crisis. They also set higher capital charges in rules known as Basel III, prompting European and Canadian banks to start using synthetic risk transfers regularly.
U.S. regulations have been more conservative. Around 2020, the Federal Reserve declined requests for capital relief from U.S. banks that wanted to use a type of synthetic risk transfer commonly used in Europe. The Fed determined they didn’t meet the letter of its rules.
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https://www.wsj.com/finance/banking/bank-synthetic-risk-transfers-basel-endgame-62410f6c 
Comments
I had an a/c at NetBank when it failed. Its buyout by EverBank had fallen through. As part of the FDIC rescue, it was acquired by ING Direct (anyone remember that?), and that was acquired by Capital One when Dutch rescue of ING required its withdrawal from most foreign operations. That is how I got a Capital One a/c.
EverBank itself was acquired by TIAA a few years ago and was renamed TIAA Bank. TIAA had 2nd thoughts and has now spun off EverBank, so it exists again.
I’ve tried repeatedly to link the correct list from Wikipedia. Just won’t take on various devices. Sorry.
Yes, of course, as Yogi said, the list included acquiring banks. If I have time tonight I’ll try to get a good link to stick.
Bank Name / Followed by Acquirer (if applicable)
First National Bank of Nevada Mutual of Omaha Bank
First Heritage Bank, NA Mutual of Omaha Bank
IndyMac Bank FDIC
First Priority Bank SunTrust Bank
ANB Financial, NA Pulaski Bank and Trust Company
Hume Bank Security Bank
Douglass National Bank Pulaski Bank and Trust Company
Miami Valley Bank The Citizens Banking Company
First Integrity Bank Regions Bank
Columbian Bank and Trust FDIC
Silver State Bank Nevada State Bank
Integrity Bank Regions Bank
The Columbian Bank and Trust FDIC
First Georgia Community Bank United Bank
PFF Bank and Trust US Bank
Downey Savings and Loan US Bank
The Community Bank Bank of Essex
Security Pacific Bank Pacific Premier Bank
Franklin Bank Prosperity Bank
Freedom Bank Fifth Third Bank
Alpha Bank & Trust Stearns Bank
Meridian Bank Central Bank
Main Street Bank Bank of Advance
Alliance Bank Royal Bank of Canada
County Bank The Bank of Fayette County
FirstBank Financial Services Regions Bank
First Georgia Community Bank United Bank
National Bank of Commerce Sunflower Bank
Bank of Clark County Umpqua Bank
Sanderson State Bank First State Bank
Haven Trust Bank Branch Banking and Trust Company
Corn Belt Bank and Trust Company The Farmers Bank of Liberty
Riverside Bank of the Gulf Coast TIB Bank
American Southern Bank Premier American Bank
First National Bank of Arizona Mutual of Omaha Bank
First Heritage Bank, NA Mutual of Omaha Bank
First National Bank of Nevada Mutual of Omaha Bank
First Priority Bank SunTrust Bank
FirstCity Bank Alma Bank
Colorado National Bank Bank Midwest
First State Bank of Altus Herring Bank
First National Bank of Danville First Financial Bank
First Heritage Bank, NA Mutual of Omaha Bank
First National Bank of Anthony Bank of Kansas
First State Bank Mutual of Omaha Bank
Freedom Bank Fifth Third Bank
Alpha Bank & Trust Stearns Bank
Meridian Bank Central Bank
Main Street Bank Bank of Advance
Alliance Bank Royal Bank of Canada
County Bank The Bank of Fayette County
FirstBank Financial Services Regions Bank
First Georgia Community Bank United Bank
National Bank of Commerce Sunflower Bank
Bank of Clark County Umpqua Bank
Sanderson State Bank First State Bank
Haven Trust Bank Branch Banking and Trust Company
Corn Belt Bank and Trust Company The Farmers Bank of Liberty
Riverside Bank of the Gulf Coast TIB Bank
American Southern Bank Premier American Bank
First National Bank of Arizona Mutual of Omaha Bank
First Heritage Bank, NA Mutual of Omaha Bank
First National Bank of Nevada Mutual of Omaha Bank
First Priority Bank SunTrust Bank
FirstCity Bank Alma Bank
Colorado National Bank Bank Midwest
First State Bank of Altus Herring Bank
First National Bank of Danville First Financial Bank
First Heritage Bank, NA Mutual of Omaha Bank
First National Bank of Anthony Bank of Kansas
First State Bank Mutual of Omaha Bank
Freedom Bank Fifth Third Bank
Alpha Bank & Trust Stearns Bank
Meridian Bank Central Bank
Main Street Bank Bank of Advance
Alliance Bank Royal Bank of Canada
County Bank The Bank of Fayette County
FirstBank Financial Services Regions Bank
First Georgia Community Bank United Bank
National Bank of Commerce Sunflower Bank
Bank of Clark County Umpqua Bank
Sanderson State Bank First State Bank
Haven Trust Bank Branch Banking and Trust Company
Corn Belt Bank and Trust Company The Farmers Bank of Liberty
Riverside Bank of the Gulf Coast TIB Bank
American Southern Bank Premier American Bank
First National Bank of Arizona Mutual of Omaha Bank
First Heritage Bank, NA Mutual of Omaha Bank
First National Bank of Nevada Mutual of Omaha Bank
First Priority Bank SunTrust Bank
FirstCity Bank Alma Bank Colorado
I asked Bing’s Chat GPT to assist me in a difficult situation. The above is the list he / she / it compiled in a minute’s time, along with the opening narrative it provided. (I pray it is accurate.)
Actor James Cromwell portrays Hank Paulson in this one. Anyone but me seen it? I wonder how true to life it is, the portrait of Paulson, offered in that movie? He and uncle GWB presided over the bubble and crash, eh?
https://www.imdb.com/title/tt1495980/?ref_=nm_flmg_t_44_act
'Too Big To Fail' was another post-GFC flick that had a pretty good cast, too. And then for something on the semi-satirical side, there's always 'The Big Short.'
https://www.imdb.com/title/tt1615147/?ref_=nv_sr_srsg_0_tt_8_nm_0_q_margin%20call