Report: Banks Prepping Up To $100 Billion Fund Against Securities Collapses

Banks said to be prepping up to $100B fund
Reports: Citigroup, others working with Treasury Department on plan to protect against further securities collapses.
October 14 2007: 12:25 PM EDT

NEW YORK (CNNMoney.com) -- A consortium of the world's biggest banks, led by Citigroup, is working to create a fund to back up to $100 billion in shaky mortgage and other securities, according to published reports Sunday.

The fund, according to reports in the New York Times and Wall Street Journal, would be used to buy securities at risk in the current credit crunch in an effort to avoid a broader economic problem. An agreement on the fund's framework could be announced as early as Monday, the Times reported, adding the talks were ongoing and could still result in no accord.

Both publications said the banks were brought together by the Treasury Department three weeks ago. A key principal in the talks is said to be former Goldman Sachs (Charts, Fortune 500) execuitive Robert Steel, under secretary of domestic finance and key aide to Treasury Secretary Henry Paulson.

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http://money.cnn.com/2007/10/14/news/economy/bailoutplan/index.htm?section=money_latest

Fed bailout is simply stealing money value from people on fixed incomes and from their savings and putting it into pockets of the rich bankers.

Banks pooling their own money to bail themselves out seems a reasonable way to go.

The money should be directed towards those defaulting on loans.

Better to keep people in their homes than bail out the banks and leave millions of empty foreclosed properties on the market.

and balances so that it is not a total wipe-out that risks the safety of the barons. Lower to serfdom at a sustainable pace to indoctrinate and prepare the populace (and get more prisons built).