Several banks with troubled fixed income and mortgage securities are making the rounds to raise $80 billion to $100 billion to build a fund to buy some of this distressed debt. Citicorp (C) has the largest pool of these instruments, so it has the most to gain, or lose, if the fund has any problems.
Well, it appears that the work to build this pool of capital is already fraying at the edges.
According to The New York Times, the three big banks involved in the deal, Cit, BAC, and JP Morgan (JPM) are having trouble getting their ducks in a row. "All three banks agree on the concept but differ on the details. Other questions remain. How will the plan work? Who will participate? How much will its backers put in? "