U.S. bank rescue fund would provide $50 bln in loans: reportupdated 25 minutes agoFont size: WASHINGTON (Reuters) - U.S. and foreign banks were in talks on Sunday to create a pool of money worth up to $50 billion to lend to troubled financial companies to help inoculate the global financial system from the possible failure of Lehman Brothers <LEH.N>, the Associated Press reported, citing an unnamed top investment banking official.

The AP also said officials at the U.S. Treasury and the Federal Reserve say they are prepared to be more generous in the Fed's emergency lending program for commercial and investment banks.

The story also quoted the official as saying the Treasury and the Federal Reserve were pushing Bank of America Corp. <BAC.N> to buy Merrill Lynch & Co. <MER.N>, but those talks were still preliminary.