BusinessCompany NewsCiti brings $49bn SIVs on balance sheet

Citi brings $49bn SIVs on balance sheet

Bank moves to support vehicles which trade in sub-prime related securities, bringing them on to the books

Citigroup has moved to bring $49bn worth of structured investment vehicles
(SIVs) on balance sheet, in the latest fallout from the sub-prime crisis.

The bank
said
last night that it planned to provide a support facility for the
troubled vehicles, which deal in sub-prime related securities.

The move will mean consolidating them within Citi’s balance sheet, but will
not mean any funding requirement, the bank said.

The bank said the moves ‘are designed to support the current ratings of the
SIVs’ senior debt and to allow the SIVs to continue to pursue their current
orderly asset reduction plan.’

The move is something of a u-turn, with the bank having earlier insisted it
would not consolidate the vehicles.

In other moves, the chief financial officer Gary Crittenden saw his remit
extended yesterday.

Crittenden is set to review the bank’s structure and cost base,
the
Telegraph reported.

Further Reading:

Read
Citi’s statement on SIVs

The
Telegraph’s story

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