Monday, September 29, 2008
A Glimmer of Optimism?
The most important financial crisis-related news this morning is not the tentative agreement on TARP-lite reached over the weekend in the USA. At best this is a holding operation that buys (a little) time for the US banking system while the industry and the authorities figure out how to recapitalise the banking sector. It is also not the nationalisation of Bradford and Bingley, a systemically unimportant UK bank specialising in residential and buy-to-let mortgages. B&B is less than half the size of Northern Rock (at its peak).