Sunday, September 14, 2008

Ten Banks Commit to $70 Billion Borrowing Facility

Ten of the world's biggest banks on Sunday committed to establish a $70 billion borrowing facility to bolster worldwide liquidity.

Each bank has committed to fund $7 billion for the collateralized facility, and any one of the 10 banks would be permitted to borrow up to one-third of the total facility, the banks said in a joint statement. The financing may grow "as other banks are permitted to join," they said.

The 10 banks are Bank of America Corp, Barclays Plc, Citigroup Inc, Credit Suisse Group, Deutsche Bank AG, Goldman Sachs Group Inc, JPMorgan Chase & Co , Merrill Lynch & Co , Morgan Stanley and UBS AG.

Note: Interesting that Merrill is on the list, since they were just bought/bailed out by B of A.

-Robert Wenzel

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