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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (70364)	9/15/2008 12:21:24 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 74559

>>Whichever way it goes, something will happen.<< Yup MQ already has. bloomberg.com Banks, Firms Set Up $70 Billion Fund for Liquidity (Update1) By Elizabeth Hester Sept. 14 (Bloomberg) -- A group of banks including Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are putting up $70 billion for a borrowing fund aimed at providing liquidity. The Federal Reserve also said it will accept other types of securities -- including equities -- as collateral for making direct loans to investment banks, according to a joint statement today. The firms plan to use the facility beginning this week. Each participating financial firm will provide $7 billion to establish the fund and have the ability to borrow up to a third of the total. Other banks include Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co. and UBS AG. The pool could expand as other companies join. The firms acted as Lehman Brothers Holdings Inc. prepared to file for bankruptcy protection after talks on a possible sale collapsed during the weekend. Separately, Bank of America agreed to buy Merrill Lynch for about $44 billion, a person with knowledge of the deal said, after Merrill's shares fell more than 35 percent last week. The firms opened the over-the-counter derivatives market for trading this afternoon to help with the ``orderly resolution'' of Lehman's exposures. ``These actions reflect the extraordinary market environment,'' the statement said. To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net. Last Updated: September 14, 2008 23:11 EDT Email this article Printer friendly format Advertisement: Do stocks outperform bonds? Learn about the power of an all-bond portfolio. Sponsored links More News * Bank of America Said to Reach $44 Billion Agreement to Buy Merrill Lynch * Lehman Prepares Bankruptcy Filing as Bank of America, Barclays Quit Talks * AIG Seeks $40 Billion Fed Bridge Loan, Times Says; Rejects Private Equity Bloomberg.comNEWS \| MARKET DATA \| INVESTMENT TOOLS \| TV AND RADIO \| ABOUT BLOOMBERG \| CAREERS \| CONTACT US \| LOG IN/REGISTER Terms of Service \| Privacy Policy \| Trademarks \| Site Map \| Help \| Feedback \| Advertising \| ?????? Get Quote LEH:US