Bank of Montreal Misses Margin Calls

"We are no longer in the same world that we were in December," said a person familiar with the discussions between the banks and the committee.

"We are struggling to hang on."

BMO's troubles are a vivid illustration of how the disintegration of so-called structured products like ABCP is undermining the financial industry's ability to cure its ills and aid clients stuck with foundering investments. More and more banks are finding that they don't have the capital because all available money is tied up plugging holes in their own balance sheets.