Thursday, January 10, 2008
There has been a bit of nervousness among the mortgage banks again today. Rumours of someone seeking emergency funding from the Bank of England went round the City once more, and with the Bank's monetary policy committee deciding not to cut interest rates, the sector headed south. Even a continuing fall in the Libor rate did not help matters. Bradford & Bingley seemed to suffer the brunt of the rumours, and shortly before the market closed it denied it had gone to the Bank for funding. Its shares still ended 9p lower at 249p, while Alliance & Leicester lost 30p to 724.5p and HBOS fell 29p to 647p.