NEW YORK — A top investment banking official says U.S. and foreign banks are planning major steps to inoculate the global financial system as a bankruptcy filing by Lehman Brothers appeared likely.
The official said Sunday the banks would create a pool of money up to $50 billion to lend troubled financial companies. And officials at the U.S. Treasury and the Federal Reserve are expected to say they are prepared to make additional loans.
The plan comes as top government officials and Wall Street executives hold marathon meetings about Lehman's future.
The official says the Fed and Treasury are pushing Bank of America to buy Merrill Lynch. The person, with direct knowledge of the talks, was not authorized to speak publicly because the discussions were ongoing.