The agreement reached last week makes several changes that simplify earlier proposals. SIVs will no longer have to get the approval of at least 75 percent of their investors if they want to participate in the fund. In addition, the backup fund will not distinguish between assets it buys from each SIV, it will assign the same risk level to all their troubled securities.
In other words, the assets dumped there are all high risk and worthless, why would anyone bother putting anything of value in there? This allows the big banks to keep worthless investments off the balance sheets and still satisfy FASB 157.