by Calculated Risk on 10/21/2007 11:45:00 AM

From MarketWatch: More firms expected to join SIV fund: officials (hat tip Bob)

More financial firms are expected to join the "Super SIV" special fund to help guarantee liquidity in the commercial paper market, officials said Saturday.

"Participation is expected to broaden in the weeks ahead," said Robert Steel, the U.S. Treasury undersecretary ...

Bank of Italy Governor Mario Draghi told reporters on Friday that Treasury Secretary Henry Paulson had informed his G7 colleagues that Pacific Investment Management Co., the world's largest bond fund, and Fidelity Investment, the Boston-based mutual fund giant, have decided to join the SIV fund.

But a spokesman for PIMCO said Draghi was incorrect.

"PIMCO is not participating," PIMCO spokesman Mark Porterfield said in an email on Saturday.

PIMCO is smart to stay away from this mess.