LBBW has permanently bailed out Sachsen Funding I, a $2.25bn SIV-lite, just days after the German Landesbank finalised a deal to buy out eastern peer Sachsen LB, which formerly ran the investment vehicle out of its Dublin office.

The Sachsen SIV-lite is one of a handful of such vehicles created and sold by Barclays Capital, all of which have been pushed to the point of failure by the near closure of the short-term debt markets upon which they relied and the falling value of mortgage-backed investments.