Wall Street Gearing Up To Trade California IOU's

“We have a whole team working on it,” Barry Silbert, chief executive of Second­Market, a company that trades illiquid assets such as bankruptcy claims, private company stock and toxic assets, told FT.

Silbert said hedge funds, municipal bond investors and other institutions were interested. Trading volume will depend on how many IOUs the state issues and how long banks accept IOUs for deposit at face value.

Bank of America and Wells Fargo have agreed to accept them as deposits, at least for the next week or so.