by Calculated Risk on 11/26/2007 09:30:00 AM

From MarketWatch: HSBC to provide $35 billion in funding to SIVs

HSBC Holdings on Monday said it would move two of its structured investment vehicles onto its balance sheet and provide up to $35 billion in funding, saying it doesn't expect a near-term resolution of the funding problems faced by the vehicles that it and other banks hold.

...[HSBC] insists earnings won't be materially impacted, because existing investors will continue to bear all economic risk from actual losses.

"We believe that HSBC's actions will set a benchmark and restore a degree of confidence to the SIV sector ... " the bank said in a statement.

This is a poke in the eye to the SIV Superfund and will put pressure on Citi and others to make similar moves.