Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Government plans to help UK banks
04-16-2008, 06:45 PM,
#1
Government plans to help UK banks
Quote:The Bank of England is poised to launch a new lending programme for UK banks in an effort to break the logjam in the credit market, the BBC has learned.

Final details are still being worked out including the scale of the plan and the exact terms.

But it will be similar to moves in the US, will be backed by the Treasury and could be launched as soon as next week.

The scheme would temporarily allow banks to swap their mortgage-based assets for government bonds.

The hope is that banks will find it easier to borrow and lend to other banks using these bonds as security, which in turn would ease up lending to individual borrowers.

The government does not consider this a bail-out of the banks and I've been told the scheme will not go ahead unless it can be designed to protect the taxpayer from any loss.

One safeguard will come from exchanging the mortgage-backed assets at less than their market value.

Banks are likely to welcome the plan, though it would need to be on a larger scale than previous efforts if it is to make a significant difference.

http://news.bbc.co.uk/1/hi/business/7351073.stm
The revolution is not an apple that falls when it is ripe. You have to make it fall. - Che Guevara

Resistance Films Youtube Channel

TriWooOx Podcast
Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
Star Will encrypted peer-to-peer currencies make banks obsolete? BitCoin, ECash Ripple .. solar 57 10,175 03-15-2014, 02:20 PM
Last Post: CharliePrime
  Evidence Banks Have Bought Off Washington Andrej75 1 431 11-18-2013, 12:58 AM
Last Post: stiffy
  Banks to Rule Them All mexika 0 505 08-28-2013, 08:35 PM
Last Post: mexika
  "Evil People Have Plans" macfadden 1 399 01-18-2013, 11:08 PM
Last Post: macfadden
Smile U.S. Government Stages Fake Coup To Wipe Out National Debt CharliePrime 0 465 09-26-2012, 01:14 PM
Last Post: CharliePrime
  How The Too Big To Fail Banks Were Born yeti 1 388 01-20-2012, 09:29 PM
Last Post: h3rm35
  UK banks charging as much as 800,000% on overdrafts TriWooOx 3 605 12-03-2011, 07:23 PM
Last Post: nwo2012
  Science of Revolution - Defeating Wall Street Banks and the Federal Reserve yeti 0 441 10-24-2011, 04:07 PM
Last Post: yeti
Question Tax Cuts Can Lead You to Paying More to the Government FastTadpole 0 418 09-21-2011, 04:43 AM
Last Post: FastTadpole
  Banks could charge £2.50 every time we use a cash machine TriWooOx 15 2,560 07-01-2011, 09:45 AM
Last Post: pax681

Forum Jump:


Users browsing this thread: 1 Guest(s)