Can the loan market police quell its burst of anarchy?

The crumbling of the leveraged finance overhang is a rough process, verging on chaotic. Individual banks in syndicates are selling their positions without telling the others; opportunistic private equity funds are buying back their own debt below par. Most accept that some of this indiscipline is unavoidable, but loan bankers and the Loan Market Association are trying to decide where — and if — they can draw the line.