October 24, 2007 (LPAC) -- A senior European financial expert characterized the so called Master Liquidity Enhancement Conduit as little more than a "bad joke" which would hardly be enough to bail out Citigroup, one of its main sponsors.

Considering that the estimated total of unrealized looses of the international financial system over the last three months run up to $2,400 billion, a fund amounting to between $100 to 200 billion, as envisioned for the MLEC, would barely be enough to make up for the losses in Citigroup, the source said. He also doubted that the German banks would go along with such a doubtful scheme.

Although he has had the opportunity to warn people at the highest levels of European finance on how serious the situation is, the source said, he has nonetheless been told "These things are probably better left unspoken."