Role of SIVs in a financial crisis: the Citigroup debacle

Sheeba Kapil and Kanwal Kapil

International Journal of Applied Management Science, 2009, vol. 1, issue 3, 247-276

Abstract: The subprime crisis engulfed not only the US economy, but has also put the global economies under dark clouds of uncertainty. This paper is an attempt to understand the financial crisis and causative factors for the same, the genesis of structured investment vehicles (SIVs), their nature, their business model and their contribution to the subprime crisis. Further, we intend to discuss the role of Citibank (the world's largest bank), which pioneered the concept of SIVs, the fate of Citibank post subprime crisis, which forced the bank to go for major restructuring. This paper tries to find out the various reasons for this debacle which not only affected the largest bank of the world or the strongest economy like US, but continues to have a contagion effect on the entire global markets. In the end, the authors try to raise few research issues and larger issues related to public policy.

Keywords: structured investment vehicles; SIVs; financial crisis; subprime crisis; securitisation; mortgage backed securities; MBS; credit derivatives; credit rating; Citigroup; public policy; business models. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=23704 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:injams:v:1:y:2009:i:3:p:247-276

Access Statistics for this article

More articles in International Journal of Applied Management Science from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().