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Bankrupt Of England Is "capital Taliban"

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Vince having a go at the BoE for not supporting SME lending enough, because it is requiring the banks to hold more reserves.

http://www.ft.com/cm...l#axzz2Zr82mAEN

The tensions were stoked last month when Mr Osborne's hopes of a revival in the housing market were threatened by prospective capital demands on Nationwide, Britain's biggest building society and one of the UK's fastest growing mortgage lenders

Seems they have to make their mind up. Support the housing ponzi or small business, and at the moment boosting house prices seems to be the winner.

I can only post one paragraph due to FT/Fubra posting guidelines. To read more do the Google trick if unsubcribed.

Cable attacks Bank's 'capital Taliban' - FT.com

Edited by aSecureTenant

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(...)

Seems they have to make their mind up. Support the housing ponzi or small business, and at the moment boosting house prices seems to be the winner.

(...)

+ 1

Surely Vince Cable has argued the SME case within the cabinet, to no avail, and decided to go public, and used the "Taliban" word to make sure the media would report his views.

But Carney’s on Osborne side, the FT article says that soon after Carney's arrival Nationwide was told by the BoE that it would have until 2015 to meet the new leverage ratio.

Cable must be very worried about the 2015 elections as well. If the economy is not growing well by then the LibDems will lose a lot of MPs.

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It was always a problem with the divergent objectives of raising capital and increasing lending. It does look like plan b is coming which i suspect will also trigger a credit downgrade for the UK.

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It was always a problem with the divergent objectives of raising capital and increasing lending. It does look like plan b is coming which i suspect will also trigger a credit downgrade for the UK.

The regulator has taken a look at the UK's banks and does not think there is sufficient capital to absorb losses. The politicians want more lending but do not like the BoE's independence.

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The regulator has taken a look at the UK's banks and does not think there is sufficient capital to absorb losses. The politicians want more lending but do not like the BoE's independence.

Independence of the BoE is dubious at best. Indeed the new Deputy Governor is an ex HM Treasury mandarin.

Seems an exercise in buck passing to me.

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Independence of the BoE is dubious at best. Indeed the new Deputy Governor is an ex HM Treasury mandarin.

Seems an exercise in buck passing to me.

But quite clearly it is exercising independence, to the politicians' annoyance. It is likely to be the case that staff at HMT and the Bank are of the same cloth - staff tend to move between both organisations. However HMT is not the same as Vince Cable.

Edited by Ah-so

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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