NEW YORK- TEN Wall Street banks have agreed to set up a collateralised borrowing facility, and committed to fund for US$7 billion (S$10 billion) each.
Ten banks are Bank of America , Barclays, Citibank , Credit Suisse , Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley, and UBS.
Banks say committed to fund US$7 billion each for a US$70 billion collateralised borrowing facility.
Banks say working together to assist in maximising market liquidity through commitment to ongoing trading relationships, dealer credit terms and capital committed to markets.
Banks say working together to facilitate orderly resolution of OTC derivatives exposures between Lehman and its counterparties.
The 10 banks say they all intend to use expanded federal reserve primary dealers credit facility this week.
The 10 banks say actions reflect 'extraordinary market environment'. -- REUTERS