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.