United Kingdom
FSA pronounces on Northern Rock
The Financial Services Authority, the UK's financial watchdog, made an announcement today about Northern Rock.
Launch the lifeboats? Not likely!
The closest parallel to the rescue of Northern Rock is the secondary banking crisis which erupted at the end of 1973 and which brought down a whole string of so-called "secondary" banks. That financial crisis, like this one, was preceded by a long period…
Bank of England moves to aid mortgage lender
The Bank of England said on Friday that it would provide a liquidity support facility for Northern Rock, a UK mortgage lender.
Bank of England injects £4.4 billion extra
The Bank of England loaned £4.4 billion ($8.9 billion) more than the forecast reserves target on Thursday after promising to do so last week if overnight lending rates remained high.
King refuses to aid markets
Mervyn King, the governor of the Bank of England, said on Wednesday that he believed providing additional liquidity against a wider range of collateral and over longer periods "sows the seeds of a future financial crisis".
BoE holds rates, aids markets
The Bank of England voted on Thursday to keep the base rate at 5.75% after offering the previous day to inject extra funds into the money markets next week if liquidity problems persist.
Credit crunch has "sown seeds of downturn"
Jon Moulton, a well-known private equity investor, said that the credit crunch had " sown the seeds of a major downturn," the Financial Times reported.
Cost of UK borrowing hits ten-year high
Banks borrowing sterling over a three-month period yesterday found the cost at a near-ten-year high as the major UK financial institutions sought medium-term funding to help them survive the financial volatility in the credit markets.
Barclays revealed as BofE borrower
Barclays, a commercial bank, said Thursday that it was the bank that borrowed £1.6 billion ($3.2 billion) from the Bank of England's standing facility.
BofE lends £1.6 billion from standing facility
The Bank of England said that a commercial bank borrowed £1.6 billion on Wednesday through the Bank's standing facility, which charges 100 basis points more than the base rate.
UK regulator revamps enforcement division
The Financial Services Authority (FSA), the UK industry regulator, will offload a third of staff from its enforcement division as part of its shift from a rules to a principles-based regulatory framework.
BoE's MPC all agreed to hold rates
Minutes of this month's meeting at the Bank of England revealed all nine members of the monetary policy committee were in favour of this month's rate hold.
UK inflation stats lower chances of rate hike
The UK's inflation rate has fallen below its target 2% rate for the first time in 15 months, fuelling speculation that interest rates have peaked at 5.75%.
IMF paper criticises UK's golden rule
The International Monetary Fund (IMF) has published a working paper which suggests improvements the United Kingdom's measure of fiscal performance - the golden rule.
BoE inflation report suggests rate hike
The Bank of England looks set to raise rates to 6%, after its August inflation report, released on 8 August, indicated that further hikes were needed to bring inflation down towards the 2% target.
Bank of England leaves rates unchanged
The Bank of England today announced that it would leave its benchmark interest rate at 5.75%. The decision to hold rates steady was widely expected, though most economists expect rates to rise to 6% before the end of this year.
Gieve warns of losing inflation battle
John Gieve, a deputy governor at the Bank of England, has warned that the Monetary Policy Committee (MPC) could lose the battle against inflation if it took a more gradual approach to raising interest rates.
New FSA chief sounds warning call
The new chief executive of the British Financial Services Authority, Hector Sants, has warned that banks and financial institutions may not have done enough to protect themselves and their investors against the impending market downturn.
BoE's Besley: rates should move higher, faster
Raising rates sooner will help bring inflation back to target faster, explained Timothy Besley, an external member of the Bank of England's rate-setting MPC, at a seminar organised by the CEPR in London.
Fed's Plosser on housing and monetary policy
The recent reversal of the boom in housing activity and house prices in the United States has contributed to a slowdown in economic growth, says Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, in this speech. But, he argues,…
FSA urged to take on retail banking regulation
John Tiner, who leaves the UK's Financial Services Authority (FSA) today after four years as chief executive, told an annual meeting that the oversight of retail banking should be consolidated, as the reasons that had led to a separate code were no…
BoE minutes show rate rise split
The Bank of England's Monetary Policy Committee (MPC) voted 6 to 3 to raise interest rates this month, according to the minutes of the July meeting published today. Kate Barker and Paul Tucker voted with the governor, Mervyn King, in favour of a rise of…
Financial-stability stress testing at BoE
Nigel Jenkinson, an executive director at the Bank of England, set out plans for a suite of models to map the effects of financial system stress.
Sants named as new FSA chief executive
Hector Sants has been appointed chief executive of Britain's Financial Services Authority (FSA). He will take up the post on 20 July 2007, succeeding John Tiner who steps down at the Annual Public Meeting on 19 July.