BOE Ponders Corporate-Bond Sales

Thu, 3 Dec 2009 10:22:33 +0000

The Bank of England said it is consulting on making further efforts to boost liquidity in corporate-bond markets by offering to make sales of corporate debt, as well as buying it.

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Bank rescues: Bigger than you thought

Thu, 26 Nov 2009 11:40:33 +0000

How some shareholders lost out, and all must be wiser in future TWO years ago when Northern Rock, a mortgage bank, was teetering on the brink, the financial authorities considered keeping it afloat with secret emergency lending. Mervyn King, the governor of the Bank of England, would have liked to do it, he said later, though others say that initially he may have underestimated the seriousness of the situation. But there were legal objections to a covert operation. Soon a very public run on Northern Rock put paid to the lender’s prospects. It had eventually to be taken over by the state; its shareholders have so far lost everything. The objections at that time came mainly from the Financial Services Authority (FSA), which warned that a listed company would have to disclose the emergency funding to avoid misleading the markets. But a year later, it seems, there were no such qualms about covert central-bank support. More than GBP60 billion ($100 billion) was provided to two banks—Royal ...

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BOE Ponders Corporate-Bond Sales

Bank rescues: Bigger than you thought