Paulson's TARP Reform Spells Return of Systemic Risk, BNP Says

Treasury Secretary Henry Paulson's decision to abandon the purchase of toxic mortgage-linked securities under the Troubled Asset Relief Program may trigger a return of systemic risk to credit markets, BNP Paribas SA said.

``Substantial risk still remains within the U.S. financial system,'' said Rajeev Shah, a London-based credit strategist at BNP Paribas. "Uncertainty about existing troubled assets could lead to increasing systemic risk.''

Here's a hint about what's going on.