US banks to work together, will market sentiment be lifted (temporarily at least)?

Bank of America Corp., Citigroup Inc. and four other lenders will announce new steps tomorrow to help borrowers in danger of default stay in their homes, according to people familiar with the plans.

The banks will start ``Project Lifeline,'' offering, on a case-by-case basis, a 30-day freeze on foreclosures while loan modifications are considered, two people said on condition of anonymity. The companies met with Treasury officials over the past week to discuss ways to encourage homeowners to get in touch with their mortgage servicers, one person familiar with the deliberations said. (Bloomberg, 11 February 2008)