BERNANKE: Well, Senator, it {the Super-SIV} all depends on the execution, as
I'm sure you would agree.
My understanding of the idea behind it is that a consortium of banks, together with investors, major investors, would oversee the process of purchasing high-quality assets from these unwinding sieves and then create a new vehicle which would then be financed by commercial paper, you know, purchased by, for example, large mutual funds, for example.
So my understating of the process is that, because investors, as well as a number of banks, would be involved essentially as gatekeepers in bringing assets into this new vehicle, that the valuations -- there would be an incentive, particularly on part of the investors, but also in terms of banks who didn't have direct exposures, there would be an incentive to create accurate market pricing.
If that is the way it works -- and, again, you know, it depends on the execution -- but if that's the way it works, it would remove some overhang from the market, it would create a stable financing source for those assets, and it ought not to be inconsistent with the price discovery process.