The compound verb “to kitchen sink” has become the phrase of choice among investment bankers over the last week. There has been a steady stream of chief executives lining up to get as much bad news as they can out into the market in one go. The idea is to convince investors all the nasties are now in the public domain – and if they can be associated with a previous regime, so much the better – and that, from a sub-prime perspective, things can only get better.

Last week saw Merrill Lynch and Citigroup own up to another round of losses and announce big writedowns – yet saw general support for what they had done. Similarly, reaction to Royal Bank of Scotland’s rights issue has been more supportive – or perhaps less negative – than it might have been, because investors reckon it might be a sign that the worst is over.