The detailed terms of what is now officially named the Special Liquidity Scheme (SLS) represent a successful limited rearguard action, by the Bank of England at least, against “moral hazard”. If banks want to play at all then they have to take a minimum amount of funding as dictated by the Bank. The fee for […]
Entries from April 2008
Special Liquidity Scheme (”The Fix”)
April 28th, 2008 · No Comments
Tags: Investment Management
UK Banks - RBS
April 18th, 2008 · No Comments
It’s not really surprising that Royal Bank of Scotland has muscled its way to the front of the UK banks’ rights issue queue. Firstly, it has for a long time been counting as capital types of paper which stretched accountants’ credulity to the limit. A “normal” interpretation of qualifying capital rules would have left it […]
Tags: Investment Management · Investment News
UK Monetary Thoughts
April 11th, 2008 · No Comments
The last-minute statistics coming up for scrutiny by the Monetary Policy Committee in its interest rate-setting meeting yesterday do not simplify its task. Figures from the British Retail Consortium suggest that shop price inflation has fallen slightly in the last month to 1.1%. The BRC says its members are nobly responding to customers’ desire for […]
Tags: Investment Management
Bank of England’s quarterly survey of credit conditions
April 4th, 2008 · No Comments
If it were the only set of data that needed to be considered, the Bank of England’s quarterly survey of credit conditions, published yesterday, would be pointing to an imminent cut in interest rates. After contemporary evidence in the last few days from individual lenders about the price and quantity of new loans on offer […]
Tags: Investment Management