Sunday, December 16, 2007
In 2005 King dismissed warning that NorthernCrock business model was unsustainable
King said the [UK personal debt] situation was being monitored by the BoE and under control. "The vast majority of the debt is secured against a property and it would be of concern only if that was not the case." Baroness Shephard asked: "We cannot understand how Northern Rock can undercut [building societies] with their borrowing rates all the time. Where are they getting the money from?" King minimized the issue "Northern Rock operates under different rules because it is a bank"