Master Liquidity Enhancement Conduit / SIV & Conduit Bailout

It looks like the big players, the Treasury Department & the Fed have found a way to hold on to their off balance sheet addiction. Although the details are not clear yet i can´t help myself but whenever i hear "Big Banks" & Treasury Department and the Fed in one sentence it doesn´t smell like more transparency is on the way ....

Es sieht einmal mehr danach aus als wenn die großen Banken Hand in Hand mit dem Finanzministerium und der Fed Überstunden geschoben haben um auf jeden Fall zu verhindern das die bisherigen Off Balance Sheet Verbindlichkeiten in die eigene Bilanz aufgenommen werden müssen. Ich muß zugeben das immer wenn ich Banken, Finanzministerium und die Fed in einem Satz zu lesen bekomme es nicht zu Unrecht zu befürchten steht das die eh schon dürftige Transparenz noch mehr Schaden nimmt ...

And thanks to Aaron Krowne we know of some small print that is already in place to prop up these vehicles....

Und dank Aaron Krowne erfahren wir auch das die Fed bereits jetzt fleißig diese Konstruktionen ausserhalb der Bilanz auf eine Art und Weise fördert das es einem dem Atem verschlagen muß.......

Is The Fed Flushing Out The “Excess Credit” Demons?

With this in mind, those generally suspicious of the Fed might not be surprised to find out that the Bernanke bunch is busy suspending even more reserve requirements for many major banks amidst this credit crisis.

Specifically here I am referring to bank off-balance-sheet conduit subsidiaries (this is now how money market and similar vehicles are handled… which is a sketchy fact in and of itself). The Fed is apparently piling up exceptions to its regulation 23A, which normally mandates 10% reserves for such conduit entities.

The exceptions “temporarily” suspend these reserve requirements. They are open-ended. Hmmm.

One would think in a time of financial crisis that the monetary authorities would be increasing capitalization requirements. Not so in the bizarro-world of the US Fed — maintaining the con a little longer is top priority

Here the reports / Hier die Berichte

Citigroup, Bank of America Agree to Set Up $80 Billion CP Fund / Bloomberg

Banks to Start Fund to Protect Credit Market / NYT

Banks line up $75bn mortgage debt fund / FT

Rescue Readied By Banks Is Bet To Spur Market / WSJ

Here are other takes / Hier andere Meinungen

Mish Super SIVs - A Fraudulent Attempt at Concealment

Nacked Capitalism The Smoke and Mirrors SIV Rescue Plan

Zeitenwende Wall-Street plant Notfall-Fonds

Calculated Risk Musical SIVs

WSJ Deal Journal A Bailout for Citigroup?

Lee Adler The Worst Is Over ?

WSJ Opinion House of Paulson?

Paul Kasriel MLEC - Trying to Turn a Sows Ear into a Silk Purse?

Calculated Risk Institutional Risk Analytics on MLEC