Faced with no viable outside near-term options to shore up its structured investment vehicle (SIV) programs, HSBC decided to come up with a plan of its own. Last week, the bank announced that it will take the assets of its two SIVs, Cullinan Finance and Asscher Finance, and consolidate them into one SIV.

"We believe that HSBC's actions will set a benchmark and restore a degree of confidence to the SIV sector, while providing a specific solution to address the challenges faced by investors in Cullinan and Asscher," said Stuart Gulliver, chief executive of the bank's corporate, investment banking and markets division.

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