Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 25, 2008 10:09:29 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Bank of England Launches Mortgage Swap Plan

Posted Apr 21, 08 4:00 AM CDT in Business,  World 

(Newser) – Commercial banks will be allowed to temporarily swap some $100 billion in troublesome mortgages for securities backed by Britain's central bank under a plan announced today, the Wall Street Journal reports. The move by the Bank of England, aimed at boosting  liquidity and confidence in the banking system, follows similar action by the US Federal Reserve.

The swaps will last for a year, and are renewable for up to three years. British PM Gordon Brown, who’s pushing for action as consumer frustration mounts and housing prices sink, is also calling for banks to ease loan restrictions, and for more transparency. But analysts tell the Journal the move may not be enough to counteract the credit crisis in the UK, which doesn't have a Fannie Mae or Freddie Mac to cushion the mortgage market.  

Sources BBC, Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Mortgage Biz Battles Fed Reforms

    Apr 28, 08 7:05 AM CDT
    Mortgage Biz Battles Fed Reforms As the Federal Reserve moves toward stricter lending rules, mortgage providers are firing back, calling the rules too broad and arguing that they could limit loans to borrowers who don't have credit problems, the New York Times reports. Regulation, bankers say, could raise the price of mortgages by increasing paperwork and the risk of lawsuits. The outcry has pushed the Fed to consider narrowing the number of mortgages the rules would apply to. More »

  • Mortgage Crisis Spreads Across the Atlantic

    Apr 9, 08 10:58 AM CDT
    Mortgage Crisis Spreads Across the Atlantic UK home prices tumbled 2.5% in February—the largest fall since the 1990s—as the International Monetary Fund warned that Britain could face a housing crisis similar to the US. British PM Gordon Brown insisted yesterday the decline was containable, but the Bank of England is now under serious pressure to cut interest rates at its meeting tomorrow, the Times of London reports. More »

  • Bank of England Governor Gets 2nd Term

    Jan 30, 08 9:40 AM CST
    Bank of England Governor Gets 2nd Term Mervyn King has won a second term as governor of the Bank of England, the Fed's British counterpart, ending months of speculation about his future. Reuters reports that King will serve at the head of the UK central bank for another five years despite the City's fury at his handling of the credit crisis and the meltdown of Northern Rock. Several reports had suggested Gordon Brown and Alistair Darling were considering another candidate. More »

British Prime Minister Gordon Brown's approval rating have suffered as the housing market tumbles.   (AP Photo/Alastair Grant, Pool)
Britain's Chancellor of Exchequer Alistair Darling has called for patience as the government seeks solutions to the mortgage mess.   (AP Photo/Sang Tan, Pool)
British house prices are expected to dip by 15% by the end of 2009.   (Getty Images)
The UK's plan follows a similar move by the US Federal Reserve.   (Getty Images)
British Prime Minister Gordon Brown is working to stem a mortgage crisis in his country.   (AP Photo/Ron Edmonds)
British Prime Minister Gordon Brown is working to stem a mortgage crisis in his country.   (AP Photo/Manuel Balce Ceneta)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 3)

Tags

Federal Reserve  • Gordon Brown  • mortgage  • Alistair Darling  • mortgage lender  • Bank of England  • consumer debt


Loading...

Loading...

Today's Most Popular


Other World Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »