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The Bank Of England Clueless Thread


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Bank of England's Carney sees need for summer stimulus after Brexit shock

LONDON Bank of England Governor Mark Carney said the central bank would probably need to pump more stimulus into Britain's economy over the summer after the shock of last week's decision by voters to leave the European Union.

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Clearly everything is going to be loaded onto Brexit. Even reversing capital requirements. Not to mention more stimulus.

You would think that that Britain had actually already left the eu rather than just held a vote on it.

The economy must be in even worse shape than anyone could have ever imagined.

Edited by billybong
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Great image - sums it all up.

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BoE plans to reverse bank capital hike after Brexit - Bloomberg

LONDON The Bank of England plans to reverse a decision to increase banks' capital requirements because of the expected hit to Britain's economy from last week's European Union referendum, Bloomberg News reported on Friday.

What is the logic for this? It is usually: economy bad, banks lose money, more capital needed.

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What is the logic for this? It is usually: economy bad, banks lose money, more capital needed.

Now that we are unshackled from the EU, the systemic banking risks are reduced, and we can afford to let a few go bankrupt in exchange for more buccaneering capitalism.

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Betrayal of Britain Plc: Is the Bank Governor's dire warning about the economy a fit of pique over voters ignoring his doom-mongering before Brexit vote?
35F7AB1300000578-0-image-m-20_1467760806

The Canadian Governor seems determined to show that his desperate warnings - made during the course of the EU referendum campaign - are already proving right.

Says man with the ability to undermine the economy, if he had sociopathic traits.

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The BoE allotted £3.072bn to lenders, having received bids amounting to £6.3bn. Most of the collateral offered was the lowest ‘Level C ‘ grade assets, according to the Bank’s data.

http://www.ft.com/fastft/2016/06/28/boe-injects-3-1bn-of-liquidity-into-banks-after-brexit/

Interesting that they targeted 'Level C'. Which includes - among other things:

The most senior tranches of UK, US and EEA asset-backed securities (ABS) backed by credit cards; student loans; consumer loans; auto loans; social housing; and certain equipment leases of credit quality broadly equivalent to A3/A– or above. Own-name ABS will be accepted.

http://www.bankofengland.co.uk/markets/Documents/money/publications/levelccollateralsecurities.pdf

Fantastic! I suppose at least 3 Billion is (relatively) small amount. Has the BOE accepted this level of collateral before?
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Bank of England's Carney hints again at more stimulus after Brexit

LONDON Bank of England Governor Mark Carney said on Tuesday that a hit to Britain's economy from last month's decision by voters to leave the European Union could prompt the Bank to act, hinting again that more stimulus is on the way.

4:43pm BST
Bank of England's Carney agrees to open up over private Osborne talks

LONDON Bank of England Governor Mark Carney agreed on Tuesday to let a senior MP view notes from meetings with Chancellor George Osborne to allay concerns about central bank bias in the run-up to last month's European Union referendum.

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Bank of England records no dissent over lowering bank capital buffer after Brexit vote

LONDON - No Bank of England policymakers objected to a decision to cut banks' capital requirements at a meeting in the wake of Britain's vote to leave the European Union, a record of their meeting showed on Tuesday.

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