For World's Bankers, Trust Becomes a Rare Commodity.

The article examines tensions in the world banking industry. In the wake of the ongoing credit crisis created by the fall in U.S. housing prices, banks are unsure which of their counterparties have either the cash or liquidity to meet financial obligations. The large Swiss bank UBS AG has attempted to sell its entire portfolio of mortgage-backed securities, but has found no buyers. Citadel Investment Group and Pacific Investment Management Co. both rejected the proposal.