Posted on 16/10/07
BMO mulls joining rescue plan
Bank of Montreal is considering whether to join forces with three U.S. banks who unveiled a last-minute rescue plan yesterday for the moribund commercial paper market.Bank of America, Citigroup Inc. and JPMorgan Chase have agreed to create an $80-billion (U.S.) fund designed to buy some of the troubled assets that backstop this paper, and at the same time prevent a fire sale in the credit markets that could infect the broader economy. Their collaboration was guided by the U.S. Treasury Department, which is worried that the banking industry could be forced to cut lending if it becomes saddled with these credit losses.
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