Nov. 13 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said structured investment vehicles, whose assets have dwindled by at least $75 billion since July, will ``go the way of the dinosaur.''
``SIVs don't have a business purpose,'' Dimon told a conference hosted by Merrill Lynch & Co. in New York today.
JPMorgan joined larger rivals Citigroup Inc. and Bank of America Corp. in forming an $80 billion fund to help revive the market for short-term debt. The banks are pushing to have the fund in place by year-end because SIVs have been unable to get credit as subprime mortgage losses drive investors from all but the safest debt.
No Business Purpose? Let us count the ways:
1. To earn Fees
2. To Circumvent capital requirements
3. To Offload paper from the sponsor's balance sheet
4. To Bail Out other SIV's whose NAV has dropped 50%
Did I forget anything?
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