ED’S NIB: Bank of England’s £4bn+ to help money market
13th September 2007 by Mike Collins
THE BANK OF ENGLAND has placed £4.4bn into the banking system to try to calm jangled nerves as the US sub-prime mortgage crisis continues to threaten liquidity. BoE Governor Mervyn King has stressed he will not bail out banks that have over-exposed themselves to sub-prime debts and said the £4.4bn was an effort to cut the rates at which banks lend money to each other by raising the total amount of money they have to borrow. He said he did not want to encourage “excessive risk taking” by banks.
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