The aid was expected to come from a $700 billion fund established in October to rescue distressed banks and other financial institutions.

Qatar has already invested in distressed Greek banks and is thought to be looking at other devalued European assets.

The new Citigroup could also acquire branches of distressed local banks taken over by the Government.

Because stock is a call option on a firm's assets, this lost volatility will hurt the stock price of distressed banks.

Unfortunately, many of the distressed banks would not come forward to accept such loans publicly for fear of a bank run and loss of investors.

Mcorp is also a distressed bank and any acquisition would probably be done with Federal aid.

Ogwuma liquidating 20 distressed banks over a three-year period in an effort to clean up the financial system and restore confidence.

This lost volatility will hurt the stock price of distressed banks.

The loan from the central bank to distressed banks would improve their outside option in bargaining.

The Government also nationalized two distressed banks to keep them from closing.