Banks Abandon Plan for Super SIV

Citigroup, Bank of America, annd JPMorgan Chase abandon their plan to create a 100 billion dollar super fund designed to unblock the credit markets.

With the backing of the Treasury Department, the three banks announced the creation of the “Super SIV” in October. It was designed to hold the shaky mortgage assets that were owned by these banks’ off-balance sheet investment funds, or SIVs, until investors could get a better sense of the default rate of the mortgages backing these bonds and other securities.

The three companies stated today that they have launched independent rescues making the fund unnecessary.  “The consortium will continue to monitor market conditions and remain committed to work collaboratively on any appropriate solutions, including an activation of MLEC, if needed,” the group said in a statement.

To read more about Banks to abandon ‘Super-SIV’ fund head on over to CNN Money.