Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., the three biggest U.S. banks, agreed on the structure of a fund of at least $75 billion intended to help calm credit markets, the New York Times reported, citing an unidentified person involved in the talks.

The proposed fund could begin operating by the end of December, the newspaper said, citing the unidentified person. The banks may begin asking about 60 financial institutions to contribute money as soon as Nov. 16 or early next week, the newspaper said, citing the person.

The plan requires approval by the major credit-rating companies, and the banks are still negotiating a fee structure of between 75 to 100 basis points, the Times said. The agreement on a simpler fund structure, reached late Nov. 9, concluded almost two months of negotiations, the Times reported.

The fund won't require structured-investment vehicles, known as SIVs, to obtain approval of at least 75 percent of investors if they want to participate, and the fund won't distinguish between the risk levels of different SIV assets, the newspaper said.


Fonte: Bloomberg.com