PNC winding down Market Street Funding

|About: PNC Financial Services G... (PNC)|By:, SA News Editor

The unit is a variable interest entity (VIE) - a vehicle which allows the bank to make off-balance sheet investments (think subprime mortgages in the last cycle). The decision is being made in part in response to a DOJ investigation over the bank's issuance of mortgages.

The commitments and outstanding loans of Market Street ($5.9B of commercial paper outstanding as of the end of June) will be folded into the bank.

PNC doesn't expect the wind-down - which will completed by Q4 - to have a material impact on financial results.