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Two Emergency Liquidity Plans, And A Board Meeting At Merrill

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The Associated Press is reporting that there are two plans at work to provide for two different tools for staunching any contaminant from a Lehman Brother's collapse.

  • The Fed is considering opening up it's emergency lending facilities, perhaps by being open to more toxic collateral or by allowing more borrowing.
  • Meanwhile, banks are mulling the creation of an emergency lending pool of money worth up to $50 billion that could be used to aid faltering financial companies.

The Wall Street Journal says Merrill's board is meeting right now to discuss an all-stock buyout offer from Bank of America: "Details of the terms under discussion weren't immediately clear but Merrill's board was reportedly meeting to approve an offer at $29 a share, which would value the firm above $40 billion."