Monday, February 25, 2008

Investment banks are secretly profiting from emergency European Central Bank funding by acting as brokers to funnel billions of euros of much needed liquidity to Britain’s banks and building societies.

Bankers said that UK lenders were having to access the ECB through the back door

UK lenders with no operations in Europe are particularly at risk of funding problems because they have been struggling to access central bank money.While the ECB has pumped more than $500bn (£254bn) into the wholesale funding markets, dropped its penal rate and widened the collateral it accepts as security, the Bank of England has injected just £20bn.

Posted by chris @ 12:46 AM (487 views)
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