Sir Peter Burt, the former deputy chairman of HBOS, has criticised the Bank of England for failing to provide British banks with enough support. Despite this week announcing that it would provide £5 billion a week until April 9th to help banks, such auctions of extra liquidity are rare, according to Bert, who also suggested that the bank is too picky about accepting asset backed securities .
With the initial £5 billion that had been auctioned on Monday failing to meet the demand, believed to be oversubscribed by almost 500 per cent, the Bank has been given a fresh reminder of the urgency and anxiety felt at many of Britain’s banks.
The Bank of England is currently in talks with the US Federal Reserve and the European Central Bank, with commentators suggesting the three may combine to make wide ranging purchases of the devalued subprime mortgages that have been largely to blame for the problems.
Bank of England Criticised for Failing to Offer Support
Bank of England Criticised for Failing to Offer Support
Wed, 26 Mar 2008
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