Two Swiss banks UBS and Credit Suisse have joined forces with eight of the globe’s biggest banks to create a $70 billion fund designed to help keep each other afloat, the official Swissinfo news website reported Monday.
The two banks have agreed to contribute $7 billion each toward the fund, according to the report. Other contributors include Deutsche Bank, Bank of America, Barclays and Citigroup. Should any bank in the consortium need emergency cash, each member would be permitted to borrow about $23 billion, or one-third of the fund’s total allotment. That figure could grow as more banks contribute to the fund.
The news came as US investment giant Lehman Brothers filed for bankruptcy. Merrill Lynch was potentially spared the same fate when Bank of America announced it would buy that firm for $50 billion. (Xinhua)