Shades of Long-term Capital Management? To hold up other would-be failing banks, banks including JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup have committed $7 billion each for a bailout pool. A bank will be able to borrow in cash up to one-third the size of the pool. That number could go higher, the AP notes, as more banks join the program. This recalls the pool that banks put together when LTCM fell. The issue is whether this will be enough to reassure the markets? Is it big enough? And what happens if a big institution--say an AIG--needs to tap the facility more than once? Will the creditors allow that? Will they agree to a concentrated position? For now, it's a piece of the puzzle that certainly cannot hurt. But it's also not the answer to all woes.

For more:
- here's the AP article

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