Friday, July 11, 2008
After years of obscene profits, the *ankers have the begging bowl out again
Senior figures from the UK's biggest banks will today lobby the Bank of England to widen the terms of the special funding scheme launched in April to bring liquidity back to the financial sector. The bankers will argue that the Special Liquidity Scheme (SLS) has not done enough to restore confidence among banks, leading to them to remain cautious about lending money to each other and to customers. As a result, Libor - the main lending rate between banks - has remained high, as have mortgage rates charged to home buyers.