Tuesday, February 3, 2009
‘Bad bank’ still being considered
UK Chancellor of the Exchequer Alistair Darling said that the establishment of a bad bank to ring-fence toxic bank assets had not been ruled out. "We've certainly not closed the door on a bad bank if that is necessary," he told a House of Lords committee. In January a Treasury rescue scheme was introduced to insure banks against heavy losses on hard-to-trade assets. But the chancellor said that he still thought that "we need to look at a range of options" that were available.