Large banks cooperate against credit crisis

Large banks, such as the largest American bank Citigroup, are busy with collecting money for a common fund, which must prevent that the credit crisis damages the world economy further. The fund, with the value of approximately 80 billion dollar (56 billion euros), must help houses in problems and other assets which have been exposed to risky mortgages. The ministry of finances will try to lead this action to a good end.
The fund must prevent that all banks must sell billion risky securities at the same time. That would lead to large depreciation at banks, impact offices and lever funds, which have similar debt papers. Eventually banks would lend less easy money and this could also damage the economy. The idea for cooperation would arise mid- September during a meeting on the American ministry of finances. If the banks agree, the plan will possibly presented Monday.

I think it is a good initiative of the ministry of finances because they can increase the economy in America with this proposal. I have only objections with the smaller banks, how will they react on this? The small banks can’t pay this large amount, I think they will be the victim of this proposal.

Benjamin Benoit