Yesterday the Bank of England announced it would give UK banks £50 billion in exchange for mortgage backed securities.It was a move designed to put more money into the financial markets.
However it is somewhat of a u-turn for the Bank of England & its governor Mervyn King who denied it would not do anything liek this a few moths ago. The bank has basically bought assets that nobody else wanted on the financial markets.
It should be noted that the big 5 banks made profits of £30 billion in the last year despite making some rather large mistakes.
No comments:
Post a Comment