Anorak | Credit Cunch: Bank Of England Cheap Money for Business

Credit Cunch: Bank Of England Cheap Money for Business

by | 28th, September 2007

pick-pocket.jpg HOO boy, the knives are out for the Governor of the Bank of England at the moment, aren’t they? First there’s the Treasury and the Financial Services Authority (FSA) blaming him for the mess that Northern Rock got into…but hang about a bit, regulation is now the remit of the FSA. This is buck passing, not rational analysis. Then there’s this :

The Bank of England governor, Mervyn King, came under attack yesterday from Britain’s banks for his handling of the Northern Rock crisis as it emerged the central bank has increased its lending to the Newcastle-based bank to £8bn.

In a strongly worded attack, the British Bankers’ Association added to criticism from business leaders who said regulators were partly to blame for damaging confidence in the country’s financial system.

The BBA said it had warned of an impending collapse in the money markets months before the crisis hit Northern Rock. It said the crisis had also escalated following the Bank of England’s refusal to intervene with an injection of short-term capital into the money markets at discounted interest rates.

Hmm, well, which is the most important part of that statement? As the Cityunslicker points out :

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Posted: 28th, September 2007 | In: Money Comments (2) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink