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Super SIV Launches, But Shrinking Fund May No Longer Be Necessary. Today's New York Times writes "Big Banks Scale Back Plan to Aid in Debt Crisis", and says, "Today, after a month of false starts, a new superfund created by the banks to keep the crisis in housing-related debt from deepening will begin raising money from financial institutions." It cites a research piece, "Who Needs a Super SIV Anyway?" by Alex Roever of JPMorgan, who says, "There certainly seems to be a shrinking supply of SIVs to save." Roever's report estimates that just $100 billion of SIVs now need saving, as assets are rapidly liquidated and as banks bring programs onto their balance sheets. The article says "most SIVs are unlikely to participate" because 4 SIVs, "including Cheyne Finance and Rhinebridge, have been forced to start unwinding and because 9 SIVs "including the two sponsored by HSBC, have announced restructuring proposals" and "several others affiliated with them are pursuing similar options. See also, WSJ's "Fund Takes Fire Out of SIV Sales" and Bloomberg's "Societe Generale Takes On $4.3 Billion of [PACE] SIV Assets".
