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Big Banks Circle Wagons, Plan Loan Pool

The 10 companies will create a $70 billion loan program in the latest step to try to stem the global credit crisis.
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A group of 10 large financial companies are planning to take part in a $70 billion loan program that's meant to help the sector survive the credit crisis that continues to spread around the globe and claim one storied firm after another.

Each of the banks will place $7 billion in the pool. The members are:

JPMorgan Chase

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,

Goldman Sachs

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Bank of America

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,

Barclays

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,

Citigroup

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,

Credit Suisse

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,

Deutsche Bank

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Merrill Lynch

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,

Morgan Stanley

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and

UBS

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.

The idea behind the fund is to give financial-services companies in need of capital a place where they can go to borrow. Banks will be able to get loans totaling up to one-third the amount of the overall pool.

The plan though doesn't appear to have come in time to save

Lehman Brothers

(LEH)

, as the New York investment bank said Monday that it plans to file for bankruptcy after failing to find a buyer.

This article was written by a staff member of TheStreet.com.