Banks seen offering plan to restore confidence

[CHIMO]

Source: THE ASSOCIATED PRESS

NEW YORK–As the outlook for Lehman Brothers appeared to dim Sunday, U.S. and foreign banks joined forces to create a plan aimed at inoculating the global financial system against the investment bank's possible failure, a top investment banking official said.

Banks were in tense talks to create a pool of money worth up to $50 billion (U.S.) to lend troubled financial companies, the official said on condition of anonymity because the discussions were ongoing. And officials at the U.S. Treasury and the Federal Reserve were expected to announce they are prepared to be more generous in the Fed's emergency lending program for commercial and investment banks.



Read more: http://www.thestar.com/Business/article/499192#

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So seems like Barkleys were not included in the cushion, so they walked.

The reserve will now back special interest deals that meet their political objectives. How nice.