The nation's three largest banks announced Monday a multibillion-dollar plan to shore up the global credit market by acquiring investments that lost value after the mortgage meltdown this past summer.
Bank of America -- the largest bank in Florida and third largest in Central Florida -- has joined JPMorgan Chase and Citigroup in the venture to invest in commercial paper -- short-term debt companies use to help fund their operations.
The world credit markets suffered lockjaw this summer after skyrocketing home loan defaults roiled the mortgage industry and sliced the value of mortgage-backed securities.
It caused a widespread aversion to risk and led the Federal Reserve to pump money into the financial system, though the latest plan relies more on the banks themselves.
Bank of America, Morgan Chase and Citi did not disclose how much they will invest in the plan, but some industry experts suggested the total could reach $100 billion.
"This proposal will complement other solutions investors and asset managers may utilize in committing and deploying capital to support more efficient markets," the Treasury Department said Monday.