by Calculated Risk on 10/12/2007 04:21:00 PM

From the WSJ: Banks Discuss Solution To Liquidity Problem

The largest U.S. banks along with financial regulators are in confidential discussions to find a solution for a lack of cash liquidity ... [for] bank-affiliated investment vehicles that issued tens of billions of dollars in short-term debt ... the plan would be to create a "super conduit" that would issue short-term debt and serve as a buyer of assets currently held by so-called SIVs. [Structured investment vehicles] ...

Citigroup Inc., the world's largest bank in terms of market value, is one leader of the proposed plan. Citigroup has some seven affiliated SIVs with nearly $100 billion in assets.

But who would fund the "super conduit"?