Old Lady bows to markets, expands collateral pool

The paralysis in money markets has forced the Bank of England to accept poorer quality collateral, underlining the extent to which interbank conditions have worsened in recent weeks.

The Bank, which has proven the most reluctant of the major monetary institutions to expand its collateral pool, said on Friday that it would offer three-month loans against a broader range of collateral in a bid to abate interbank tensions, which have heightened in the wake of the collapse of Lehman Brothers, an

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