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Structured Investment Vehicle Problem Nears Solution as Banks Back. Moody's Investors Service has delayed ratings actions on a number of structured investment vehicles by another week, reports Bloomberg. The delay comes as a number of SIVs step up restructuring plans and announce assistance from parent banks, and as the M-LEC, or Master Liquidity Enhancement Conduit launch appears imminent. The bulk of the remaining SIV assets could be protected by deeper pockets by next week, as pressure grows on Citi to back its Beta Finance, Sedna Finance, and Five Finance programs. Today, Rabobank said it will support its $7.6 billion Tango Finance, taking it onto its balance sheet, reports Reuters. "The Tango portfolio is high quality with only minimal exposure to CDOs of ABS," said the bank. HSBC has already said it will support its Cullinan Finance and Asscher Finance programs, and WestLB has pledged to back its Harrier Finance Funding. Standard Chartered, Bank of Montreal are also all expected to support their Whistlejacket Funding and Links Finance programs, respectively. Both SIV assets overall and money market holdings in SIVs have decreased dramatically over the past two months, with SIVs now totalling less than $300 billion, as programs liquidate or move holdings onto bank balance sheets. See also, today's WSJ story, "'Super Fund' for SIVs".
