Wednesday, 12 March 2008
As of yesterday the US Fed and Bank of England tried another round of liqiuidity bombing of the market in response to yet another contraction in lending. They have tried this before and it worked then, but the real issue is that the problems keep coming back and the banks remain unwilling to lend to one another.
The UK budget is out in a little while, but in the City some of our biggest banks are in real difficulties right now in terms of trying to get enough capital together to keep their business together.
The further fall in the UK mortgage market is also creating problems for the major banks that have the big mortgage portfolio's.
I wonder what news will come out of HBOS, RBS and Alliance & Leicester in the next few days, it is not business as usual that much is certain.
Budget update later.
Posted by CityUnslicker