Standard Chartered announces it is taking SIV on balance sheet

Standard Chartered said yesterday that it would provide liquidity to its SIV Whistlejacket Capital and consolidate its assets onto its own balance sheet. It said that Whistlejacket's core assets have fallen from $18.2 billion at the end of August to $7.15 billion at 24 January 2008.

The UK bank announced it has completed a second "vertical-slice" swap of its remaining $143 million of capital notes for $1.65 billion assets from Whistlejacket. The two vertical slicings have produced a mark-to-market loss of $116 million in 2007.