I'm sure it's just a coincidence that they want a $100 billion buyout fund.
"creating an up-to-$100-billion fund to stave off the danger that there could be a fire sale of shaky mortgage-backed securities, collateralized debt obligations and other distressed assets following the recent global credit crunch.
It appears to me Citicorp is attempting to create some collateral behind the SIVs. Like a bank has to have a reserve before it can lend. Like $7 in reserve for a $100 loan.
Since there had been little liquity (buying and selling) in SIVs before (they were rolled over), there was difficulty assigning a value to "shakey" securities. Establishing liqudity prevents panic or sales at any price.
I see no bailout here. The banks are talking to the Fed about setting up a "bank sponsored funds" for their own SIVs.
yitbos