Emerging markets bank Standard Chartered has withdrawn its second round of proposals to help prevent a liquidation of Whistlejacket Capital, its $7.2bn (€4.9bn) structured investment vehicle, after further declines in the value of its assets made the bank's plans unworkable.

Whistlejacket was forced to appoint a receiver on February 11, after it breached its capital note net asset value trigger of 50%. Standard Chartered made two proposals at the time, which involved buying the SIV's commercial paper as it matured, or buying the assets of the fund outright.