The ten largest banks will create a stabund

Ten largest global banks: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Merrill Lynch, Morgan Stanley and UBS - intend to create a mutual assistance fund volume of $ 70 billion. Any of its participants will be able to contact this fund with a lack of liquidity. According to Vedomosti, each of the banks will bring seven billion to the fund and will be able to borrow up to a third of all assets of the fund (up to $ 23 billion). As a collateral on loans, the fund will accept many financial instruments, including real estate assets, which now cannot be taken a loan from the federal reserve system.

The fund is designed to maintain liquidity and reduce volatility in the "emergency situation in the market," the joint statement of banks notes. They also intend to jointly solve problems related to bankruptcy of Lehman Brothers and a large number of derivatives posted by him.

Previously, the Fed did not help Lehman Brothers with cash, as it was with the collapse of Bear Stearns, but after the bankruptcy announcement of Lehman Brothers and the deal between Bank of America and Merrill Lynch significantly softened the lending conditions for banks. Now primary dealers will be able to take the Fed loans, including under provision of promotions, loans and debts with a rating below the investment one.