A consortium of major financial institutions said Monday they will team up to buy distressed assets from each other and from other companies, in an effort organized by the Treasury Department to prop up the credit markets, the Associated Press reported today.
Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. are among the companies creating what will be known as the master liquidity enhancement conduit, or M-LEC. They said it could be operating within 90 days. It will fund its operations by issuing short-term debt.
The fund is being set up at the urging of the Treasury Department