Can Goldman Sachs save the SIV market?
Goldman Sachs may have carved out a fresh new market for itself. The Financial Times reports that after 10 months, it and Cheyne Capital, which ended up in receivership in the U.K., have agreed on a plan to bail out the firm’s structured investment vehicles (SIVs). The plan calls for the underlying assets to be sold at auction. If it works, it will establish a price and pave the way to similar restructurings at European firms, where the problems have been acute. In the U.S., such funds have generally been bailed out by parent banks. If all goes well, it bodes well for the financial sector in the U.K. and marks yet another success by Goldman Sachs.
