Citi to Rescue SIVs

Updated from Dec. 13

Citigroup(C Quote) plans to bail out its beleaguered structured investment vehicles -- a move that would put added strain on the company's already stressed balance sheet.

The largest U.S. bank will create a credit facility that would provide a backstop to some $58 billion in commercial paper and medium-term notes that make up its seven SIVs. The action effectively brings onto balance billions of debt whose assets have been severely pinched due to concerns over subprime credit.

Specifics on the planned Citi backstop facility were unavailable late Thursday, but the anticipated plan is that the bank will form the facility at the beginning of next year. ...