BoE might step in …

The Americans were only thinking about it …

The Bank of England might actually do it …

Today’s FT has the following …

“The credit crisis is so severe that dozens of smaller lenders could be forced to stop offering new mortgages unless the government intervenes, leading bankers told Gordon Brown on Tuesday.

The stark warning, issued at a Downing Street summit between the heads of big banks and the prime minister, came as Mr Brown indicated he was willing to intervene in the markets, provided the banks would respond by offering loans to first-time buyers and others struggling to find mortgage offers.

The Bank of England is close to finalising the terms for such an intervention, which would see it taking over mortgage loans that are stuck on banks’ balance sheets to break the logjam in the money markets.

People familiar with the plan, which still needs government approval, said the Bank would swap securities backed by UK mortgages for government bonds for a period of one to three years.

The Bank would not accept any mortgages agreed after the end of December last year. This would be consistent with the Bank’s aim of clearing the overhang of mortgages stuck on banks’ balance sheets without supporting new lending or exposing taxpayers to significant credit risk.”

AND !!!

Mr.Brown on Tuesday night left for the US, where he is expected to meet Ben Bernanke, Federal Reserve chairman, and Wall Street bankers to discuss responses to the crisis.

Will they really do that? And the U.S. will follow that trail???

BE AWARE … the manipulators are lurking again …

Tags: BoE, credit crunch, FT, manipulation

This entry was posted on Mittwoch, April 16th, 2008 at 07:59 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.