For the time being and until a new creation of the sophisticated financial people can exploit markets, Citi’s move to bring the SIVs onto its balance sheet probably marks the end of SIVs. Good riddance! I never like the Super SIV bailout (aka M-LEC) anyway. As for Citi’s capital, this decision has significant consequences for existing common shareholders. The Abu Dhabi deal was dilutive enough, but this SIV absorption seems to have set up for additional transactions that will hammer C in the short term whether that means another convertible preferred deal at loan shark rates or a cut to the dividend. I just don’t see how taking on the SIVs will not require something like that. Other than that, it’s just another example of the banks stocking the cookie jars.