commercial loan news

October 15, 2007

Citigroup and BOA Plan 80 Billion Fund

SOURCE: Bloomberg.com

Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. agreed to start a fund of as much as $80 billion to help revive the asset-backed commercial loan paper market.

The new company will buy assets from structured investment vehicles, units set up to purchase securities such as bank bonds and subprime mortgage debt, the banks said today in a joint statement. Other finance companies may join, the banks said.

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