November 27, 2007
HSBC Bails Out its SIVs
HSBC, the UK bank, announced that it would shut down two bank-sponsored structured investment vehicles (SIVs) and take $45 billion in mortgage-backed securities onto its own balance sheet. It becomes the first major bank to bail out its troubled SIVs. A big concern has been that there will be a "fire sale" if SIV assets are dumped on the market. A consortium of banks, including Citigroup, Bank of America, and JPMorgan Chase, seek to create a "superfund" with $100 billion to buy assets from SIVs to prevent this. WSJ, HSBC Becomes First Bank To Bail Out Troubled SIVs.
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