Disclosed is a method and computer-readable medium for bit and power allocation for modems sharing a common multi-carrier binder, including Discrete Multi-Tone (DMT) based Digital Subscriber Line (DSL) modems. In one preferred embodiment, the method includes the steps of initializing a modem by calculating loop-to-loop channel transfer functions and noise power spectral densities (PSDs) at a corresponding receiver, and taking into account cross-talk between loops in the process of allocation so as to maximize total data rates within the binder.