Michael DeSombre Quoted in Institutional Investor Article on the Liberalizing of China’s Interest Rates

April 21, 2014

On April 21, Institutional Investor quoted Mr. DeSombre in its article, “China's Rate Liberalization Stakes: Who Wins, Who Loses?” The article explores the possible wave of corporate defaults that could follow if China liberalizes its interest rates. The article draws a comparison between these defaults and the restructuring of GITIC, on which Mr. DeSombre, who worked on the restructuring, says, “In many respects the comfort letters issued for the ITICs were very similar to the implicit guarantees from the commercial banks for the wealth management products that they sell today. Eventually the government will need to allow some failures to prove that WMPs are not risk-free deposits.”