​ SIV Master Liquidity Enhancement Conduit Is "​Not Needed at This Time". The Super SIV, or M-​LEC is no longer needed The Wall Street Journal reported late Friday. Individual bank supports and improvements in the structured investment vehicle market have made the fund unnecessary. A press release issued by Bank of America says that assets of SIVs "​have been steadily reduced to less than $​265 billion" and that a "continued decline is expected". The release continues, "This orderly unwinding of SIVs is contributing to improved market stability.... [​T]​he vehicle is not needed at this time. The consortium will continue to monitor market conditions and remain committed to work collaboratively on any appropriate solutions, including an activation of MLEC, if needed." The majority of SIV assets are bank affiliated, and over the past two weeks they have had parent banks pledge to support the structures. The dissolution of the SIV problem has been a huge relief to money market fund advisors, which in a handful of cases had been forced to purchase a handful of downgraded securities from their funds. Other coverage: Reuters (​w/​Pete Crane quote), Bloomberg, and NY Times.

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