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 SayThe 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.