Tuesday, December 18, 2007

Bailout

Another big shovel for the shitpile. Bloomberg (12.18.07):
"The 'SuperSIV' fund, set up to provide cash to structured investment vehicles hurt by the collapse of the subprime-mortgage market, plans to start buying assets 'within weeks', its sponsors said today.

The fund's size, originally envisioned at about $80 billion, will be based on 'SIVs' needs and evolving market circumstances', Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement.

'SuperSIV' Fund to Start Buying in Weeks, Banks Say

The need for this thing isn't as critical as it once was after Citigroup assumed $58 billion of debt for seven of these dogs last week. The whole reason for them throwing money at this stuff is "to avoid forced assets sales to repay SIV borrowings because that would further roil credit markets and reduce the value of their own debt holdings."

Best foot forward. "The fund, also known as the Master Liquidity Enhancement Conduit, or M-LEC, can still provide 'an optional source of liquidity for eligible high-quality assets,' the banks said in the statement."

It'll also buy them time to gin up a scam to dump all the low-quality assets.

UPDATE: Oooops!! No deal.

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4 Comments:

Anonymous Anonymous said...

I suppose making up these fancy names for crap is what makes a job, a profession. "Master Liquidity Enhancement Conduit" sounds like something used to piss in while driving. (Otherwise known as a Johnny Bottle.
pt.

6:53 PM  
Blogger knobboy said...

Yeah pissed on is more like it. These fucks are just dying for the Feds to come bail 'em out with our tax dollars.

7:45 AM  
Anonymous loki said...

"Consequences" are for the riff-raff, I mean you and me.

I don't understand the ramification of these banks self-financing their way out. I imagine something has to give, somewhere, with the numbers that are in play...

12:23 PM  
Blogger knobboy said...

Here's what's going to give.

Don't think the big boys are gonna get out of this one unscathed.

They're gonna end up with a lot of Chinese, Indian and Arabian partners, whether they like it or not.

Either that or go belly-up.

1:47 PM  

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