Ready for the M-LEC?

As expected, Citigroup, Bank of America and JP Morgan announced the creation of the Master Liquidity Enhancement Conduit, M-LEC, that will raise up to $200 billion via issuance of its own securities. The money will be used to buy distressed securities to prevent large ripples from really disrupting the fragile credit markets. Critics immediately emerged, notes the New York Times. Why now? When things are starting to finally look better? Are the banks doing this to avoid taking more losses on securities? Let's hope this money never really has to be committed. Still, if crucial segments of the market tank, you have to wonder if this will be enough.

For more:
- here's the New York Times article