The top three US banks have agreed on the structure of a backup fund of at least $75 billion to stabilise credit markets.
Citing a person involved in the discussions, who spoke on condition of anonymity, the Times said that Bank of America, Citigroup and JPMorgan Chase officials reached agreement late on Friday, approving a more simplified structure than had been proposed during the course of some two months of negotiations.
"We cleared all the big hurdles," the newspaper quoted its source as saying. "We agreed to a much simpler structure that we think can get done, rather than optimise it for everyone," the person added. Discussions began in early autumn when the US Treasury Department convened a meeting. Previous versions of a backup fund had been widely considered infeasible, spurring doubts about the prospect for a final plan, the Times said.
The proposed fund could begin operating by the end of the year, the newspaper reported, and the banks could start asking some 60 financial institutions to contribute to the fund in the next five to 10 days. Treasury Department officials declined to comment, the newspaper said.
[141] 15.11.2007 Source: The NY Times
Popular News
French Bank to Repay Government Bailout - 14.10.2009 Crédit Agricole, the French bank, said Wednesday that it would repay the €3 billion of debt the government bought last December, becoming the latest big bank to pay back a bailout. Source: New York Times
Card fraud in the UK falls by 23% - 08.10.2009 The amount of money being lost through card fraud fell by 23% in the first half of the year in the UK, as criminals changed their strategies and prevention measures began to take effect, according to figures published today. Source: Guardian.co.uk
The trend: large banks will acquire smaller banks - 18.09.2009 KBW Inc., the New York-based boutique that advises financial institutions, expects 500 to 1,000 U.S. banks to fail by 2011, Chief Executive Officer John Duffy said. Source: Bloomberg
Colonial Banc Group declares bankruptcy - 15.08.2009 Colonial became the largest US bank to fail this year after it was declared bankrupt and had the bulk of its assets taken over by rival BB&T, the government banking insurer said Friday. Source: Agence France-Presse
Fighting economic crisis in U.K. - 27.07.2009 Current economic difficulties in U.K. were caused by global financial crises and have resulted into the following changes in the country's economy in 2007-2008: Source: BanksDaily.com
The European Central Bank injects €442 billion into banking system - 25.06.2009 The European Central Bank (ECB) allotted €442 billion to banks for 12 months, the biggest amount it has ever given in a single auction. The amount was more than most economists had expected. Source: RTTNews
