Citigroup Inc <C.N>, JPMorgan Chase & Co <JPM.N> and Bank of America Corp <BAC.N> have been arranging the fund, dubbed the "SuperSIV," to act as a buyer for the assets of the vehicles which are having trouble issuing short-term debt to finance their long-term assets.
NEW YORK (Reuters) - Some banks expected to contribute to a fund to bail out troubled securitized investment vehicles (SIVs) are losing interest as they doubt the fund's ability to provide a solution to the credit crunch, the Wall Street Journal reported on Wednesday.
Citigroup Inc <C.N>, JPMorgan Chase & Co <JPM.N> and Bank of America Corp <BAC.N> have been arranging the fund, dubbed the "SuperSIV," to act as a buyer for the assets of the vehicles which are having trouble issuing short-term debt to finance their long-term assets.
Wachovia Corp <WB.N>, which was one of the first banks interested in providing capital for the fund a few months ago, feels its importance is waning and has not yet made a decision to participate, the Journal said.
Japan's Sumitomo Mitsui Financial Group Inc <8316.T>. and Mitsubishi UFJ Financial Group <8306.T> have reportedly been approached to participate in the fund but have not yet decided whether to participate, the Journal reported.
!ADVERTISEMENT!Also, Gordian Knot, which runs one of the largest SIV funds, has told the sponsoring banks it does not intend to sell assets into the SuperSIV, according to the Journal.
The weaker response to the fund suggests the management fees it was expected to generate may be smaller than first thought, the Journal said.
If it should not succeed, "it's probably going to be more of an expense" than a source of revenue, Larry Fink, chief executive of the fund's adviser BlackRock Inc <BLK.N>, told the Journal.
(Reporting by Emily Chasan; Editing by Valerie Lee)
