Banks to revive world credit market 'with US$75bn fund'
A team of the world’s largest banks are today reportedly planning to launch a US$75bn (€53bn) fund to help ease the credit squeeze gripping global money markets.
US banking giants JP Morgan, Citigroup and Bank of America are understood to be leading a consortium that will invest in crisis-hit US sub-prime mortgage debt.
British banks HSBC and Barclays are also said to be involved in the move, which could be announced later today.
It is thought the banks plan to use the fund to restore confidence in the sector, amid concerns of further falls in the value of mortgage-backed securities and other investments hit by the credit crunch and soaring default rates on US sub-prime mortgages.
