The self-serving but sensible "bailout"

2 responses

  1. Arundul says:

    If the Citi SIVs don’t own any subprime or CDOs of ABS (the media has alluded that they do, when they don’t), then the real question is why is Citi doing it. The reason why SIVs, even high quality ones such as Citi SIVs, haven’t been able to sell CP is because of the scare in the headlines over subprime connected to conduits and SIVS, much of which has been poorly reported.

  2. Lorenzo Baggio says:

    So essentially the banks are pooling their funds together in the M-LEC then selling their own SIV to it and then the M-LEC is going to issue commercial paper which the banks themselves will buy. The whole purpose is for them to resell the commercial paper of the M-LEC because noone wants to touch real estate backed commercial asset paper at the moment. There just changing the name of the debt, but the debt is still there. Is that an accurate assessment?

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