The SIV "Super Fund": Dead And Buried (C)(BAC)(JPM)

The SIV "Super Fund" created by the Treasury Department, Citigroup (C), Bank of America (BAC), and JP Morgan (JPM) is dead. Once Citi took its own SIVs onto the banks balance sheet, much of the money which was needed for bailing out the pools of capital had been taken care of. Potential investors in the $100 million aid fund were reluctant to write checks. The amount to be raised kept falling and near the end talk was that the total fund might be as small as $50 billion.

Many financial experts like Alan Greenspan thought the fund was a house of mirrors. It would disguise the real value of the SIV assets by propping them up with short-term loans.

Wall St. may need a "Super Fund", but not for SIVs. The price of Citi’s stock has dropped again and now sits at $30.24. JP Morgan and Bank of America have given up some of their modest gains from the last three weeks as well.

The big money center banks are still in trouble. They may have billions more in mortgage-related write-offs. They may need more capital. If there is a requirement for a "Super Fund" it will be to pump money into the largest financial institutions to keep them solvent.

The "Super Fund" can be renamed "The Fed".

Douglas A. McIntyre