Banks set up $70bn international liquidity fund

Ten of the world\'s largest banks are reported to have established a $70bn liquidity fund this weekend.

Reuters reports that Barclays, Bank of America, Morgan Stanley, Citigroup, Credit Suisse, Deutsche Bank, JP Morgan Chase, Goldman Sachs. Merrill Lynch and UBS met and set up the funding pool to provide capital to lenders without having to go to a central bank.

Any of the 10 banks will be able to draw on up to one third of the total facility and the financing may grow as other banks are permitted to join.