Three U.S. Banks to Ask Others for Superfund Help
Three U.S. banks drawing up a plan to ease the credit markets are expected to ask others in the industry to help out next week, The Wall Street Journal reported in its online edition, citing sources familiar with the situation.
Bank of America , Citigroup and JPMorgan Chase are spearheading an effort to raise billions of dollars for a new fund that is supposed to help structured investment vehicles (SIVs) sell hard-to-value paper they hold, without further unnerving already jittery credit markets.
The banks have asked BlackRock to act as the lead asset manager for the $75 billion fund they are creating to support the asset-backed securities market, a source told Reuters on Wednesday.
According to the Journal, bankers involved in assembling the plan have said they would like to get the superfund running by January.