US banks offer rescue package for prime borrowers

Bank of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo have launched ‘Project Lifeline’ to help reduce losses from the sub-prime fallout and consequent credit crunch. As part of the plan, homeowners will have 30 days to renegotiate their mortgage payments with their lender, with the aim of reducing the number of repossessions. The banks have already participated in ‘Hope Now’, a project to help sub-prime borrowers who are struggling with higher mortgage payments. The new initiative is the first aimed at prime borrowers who are 90 days or ...