Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

SIVs had partial liquidity backup lines from banks covering one week’s maximum withdrawal or two weeks’ maximum withdrawal. That was the way to a rating. The SIVs were operating under the regulation of the rating agencies. The rating agencies modeled their portfolios, and they modeled the inflows and outflows, so I think it’s fair to blame the rating agencies at least partially for allowing the SIVs to grow to $400 billion or whatever it was.

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