Wednesday, November 28, 2007
Alliance & Leicester Now Quadded & Rammed
Fears that Alliance & Leicester may have to seek emergency funds from the Bank of England circulated in the City last night as ratings agency Standard & Poor's said the bank could suffer from the lending freeze that triggered Northern Rock's downfall. S&P said Alliance & Leicester could be in trouble if wholesale markets failed to open up in the near future, and it downgraded the outlook for the bank from stable to negative. Analysts said the bank was struggling to cope amid turbulence on international money markets that has in effect put a freeze on banks lending to each other.