Saturday, July 26, 2008

More requests for a Bank of England bailout

Credit crunch: Call for extra underpinning to support new mortgages

The government will face fresh pressure from lenders next week to ease funding conditions in the mortgage market when it publishes an interim report into the cash-strapped sector by the former HBOS chief executive Sir James Crosby.

Posted by quiet guy @ 11:54 PM (859 views)
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2 thoughts on “More requests for a Bank of England bailout

  • In other words “draw a line under our past recklessness”.

    Unfortunately, this caterpillar cannot transform into a butterfly – mortgages are provided by the cash-strapped private retail banking sector and the only way they’re going to tempt new buyers back into the market is to be really really competitive with their rates and cut some of their star CDO traders’ bonuses. It’s gonna really hurt (the senior eexecutives’ bonuses) but maybe its the only way …

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  • This bandwagon has been rolling for some time now. A month back I reported that the local EAs had buried their differences and gone to the local MP to demand government action. The piece in the local rag was all about “helping first time couples”, but clearly EAs are losing commissions due to lack of mortgage availability.

    The local paper tells of local sales falling through due to “risk averse” building societies and banks – “it’s all someone else’s fault” say the EAs. A couple of EAs in my high street have also told staff they should take a summer break “to be with their kids” (unpaid, of course).

    EA windows are full of properties and nobody is looking. With potential lay-offs in the City and Canary Wharf, our commuter town has suddenly slowed down to a dead stop for summer.

    If only 125% mortages and 6X salaries would return, they day-dream….if only!

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