The countryâs three biggest banks have reached agreement on the structure of a backup fund of at least $75 billion to help stabilize credit markets, a person involved in the discussions said yesterday, ending nearly two months of complicated negotiations against a worsening economic backdrop.
Officials from Bank of America, Citigroup and JPMorgan Chase reached agreement late Friday, settling on a more simplified structure than had been proposed, said this person, granted anonymity because he was not authorized to talk for the group.
Bank participants, money market investors and even some managers of the troubled investment vehicles that would benefit most had considered previous versions of the fund to be infeasible, casting doubt over a final plan. Discussions had been taking place since early fall, when the Treasury Department convened a meeting.
Now, the proposed fund could begin operating by the end of December, this person said. The banks could begin asking roughly 60 financial institutions to contribute to the fund by Friday or early next week.
âWe cleared all the big hurdles,â this person said. âWe agreed to a much simpler structure that we think can get done rather than optimize it for everyone.â
Officials from the banks and the Treasury Department declined to comment or did not return calls.
http://www.nytimes.com/2007/11/11/business/11bank.html?_r=1&ref=business&oref=slogin
Don´t know whether it is good or bad news...
Officials from Bank of America, Citigroup and JPMorgan Chase reached agreement late Friday, settling on a more simplified structure than had been proposed, said this person, granted anonymity because he was not authorized to talk for the group.
Bank participants, money market investors and even some managers of the troubled investment vehicles that would benefit most had considered previous versions of the fund to be infeasible, casting doubt over a final plan. Discussions had been taking place since early fall, when the Treasury Department convened a meeting.
Now, the proposed fund could begin operating by the end of December, this person said. The banks could begin asking roughly 60 financial institutions to contribute to the fund by Friday or early next week.
âWe cleared all the big hurdles,â this person said. âWe agreed to a much simpler structure that we think can get done rather than optimize it for everyone.â
Officials from the banks and the Treasury Department declined to comment or did not return calls.
http://www.nytimes.com/2007/11/11/business/11bank.html?_r=1&ref=business&oref=slogin
Don´t know whether it is good or bad news...
