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Banks unite on collateral crisis

Investment banks including Goldman Sachs in joint project to stave off derivatives margin shortage

Banks unite on collateral crisis
Photo: Getty Images

A group of investment banks including Goldman Sachs is in the early stages of a project to help the financial industry meet an expected surge in demand for collateral as a result of post-crisis regulations.

The initiative, dubbed "Project Colin", aims to create an "industry collateral infrastructure", according to people familiar with the plans. The banks are working with settlement house Euroclear, according to one person. All parties declined to comment.

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