December 14, 2007
Citigroup Bails Out its SIVs
Citigroup, shifting course under its new management, announced a rescue of seven affiliated structured investment vehicles (SIVs). It will provide emergency support if they can't find buyers for their short- and medium-term debt. This means Citigroup will bring about $49 billion of SIV assets on its balance sheet, putting further strain on its tight capital situation. Citigroup's move is widely seen as the deathknell for the Treasury Dept.-sponsored bailout by major banks, which has not gotten off the ground. NYTimes, Big Rescue of Funds by Citigroup; WSJ, Citigroup Alters Course, Bails Out Affiliated Funds.
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