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Bank Of England Fears Bank Risks


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HOLA441

Taking the piss.

http://news.bbc.co.uk/1/hi/business/6253752.stm

Bank of England fears bank risks

Bank of England building

The City could be vulnerable to financial shocks

The Bank of England has warned that risks to the financial system have increased as a result of globalisation.

...........

Mr Jenkinson's comments follow remarks by Mervyn King, the governor of the Bank of England, on Thursday, where he expressed concern about the banks' involvement in "highly leveraged lending" such as investing in hedge funds.

The worries centre around the growing practice of banks buying up a package of credit risks, such as mortgage debt, on the grounds that they are spreading the risk.

The credit derivatives market has grown 20-fold in the past five years, from $1 trillion in 2001 to $20 trillion in 2006, and leveraged loans have increased three-fold in the same period.

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HOLA442
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HOLA443
Taking the piss.

http://news.bbc.co.uk/1/hi/business/6253752.stm

Bank of England fears bank risks

Bank of England building

The City could be vulnerable to financial shocks

The Bank of England has warned that risks to the financial system have increased as a result of globalisation.

...........

Mr Jenkinson's comments follow remarks by Mervyn King, the governor of the Bank of England, on Thursday, where he expressed concern about the banks' involvement in "highly leveraged lending" such as investing in hedge funds.

The worries centre around the growing practice of banks buying up a package of credit risks, such as mortgage debt, on the grounds that they are spreading the risk.

The credit derivatives market has grown 20-fold in the past five years, from $1 trillion in 2001 to $20 trillion in 2006, and leveraged loans have increased three-fold in the same period.

ok boys, there goes the horse. Now, let's set up a lengthy and convoluted consultation process with a view to making some preliminary recommendations about the agenda for a meeting concerning the current open status of the stable door.

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HOLA444
ok boys, there goes the horse. Now, let's set up a lengthy and convoluted consultation process with a view to making some preliminary recommendations about the agenda for a meeting concerning the current open status of the stable door.

I nominate Barker, she's good at producing lengthy reports for the politicians to wipe their arses on.

Edited by OnlyMe
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HOLA448
So, he wants Sterling to tank instead?

...he is unaware....have you seen any statements from his office where he fears for the economy.....remember maths is not his strong point......he desires the 'feel safe from high interest rates' warmth to glow among his subjects.......he is after all a politician.....we can only hope the MPC take the right action.....!

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HOLA4411
why was there a cut in august 2005.

Whatever the reason, it seems to be generally accepted now, that

that was a very poor decision.

It sent out a signal that rates had peaked and were on their way

back down again..... which was not the case.

If they were uncertain of a rise, they should at least have held.

I doubt they would make that mistake again, for all their weakness.

The doves might hold, the hawks will raise.

No-one, to my knowledge, is even dreaming of reducing.

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HOLA4414
That last cut came about a month after the July 7 bombing in London.

I've been wondering about this too. And we've just had what look like another bunch of attempted terrorist attacks.

Personally it wouldn't surprise me if rates went down in July or August to restore the feel good factor.

Edited by greencat
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