British banks have snapped up another £4.4bn in emergency funding offered by the Bank of England yesterday to replenish liquidity and give them more leeway to borrow without penalty to manage daily cash flow, the Scotsman reports.
The Bank, which has so far taken a largely hands-off stance on the crisis engulfing world credit markets, allowed banks to top up the reserves they hold in central bank coffers by £4.4bn, the maximum limit flagged last week.
CHANCELLOR ALISTAIR DARLING has shone the spotlight on the role played by credit-rating agencies in the liquidity crisis in a letter to fellow European finance ministers, the Telegraph reports.
The controversial role of the agencies will top the agenda when EU ministers meet today in Portugal.
Calling for a co-ordinated response to the crisis, Mr Darling said ministers should focus on "the role of credit-rating agencies in structured finance, including whether rating agencies should be providing fuller, more transparent information".
THE NUMBER OF MORTGAGES funded by Countrywide Financial, America's largest mortgage lender, fell by 17% in August as the housing slowdown triggered by the crisis in the sub-prime sector hit hard, the Telegraph reports.
Embattled Countrywide, a bellwether of the US housing market, disclosed it wrote $34.5bn (£17bn) of mortgages last month, 80% of which came from its banking unit, highlighting its increasing reliance on its savings bank for lending.
The business, run by chief executive Angelo Mozilo, also revealed average daily mortgage application rates for August dropped 12% from a year ago, to $2.3bn, with its mortgage pipeline down from $64bn a year ago to $52bn at the end of August.
ONE OF BRITAIN'S LEADING venture capitalists has given warning that the market for leveraged buyouts will dry up for the next one to two years in the wake of the credit crisis, the Times reports.
Guy Hands, in a quarterly letter to investors in his Terra Firma buyout group, said: “The days of simply buying a good company, financing it well and enjoying a great return are over. The debt simply will not be there.”
GOLDMAN SACHS' HIGH-PROFILE alternative investments business appears to be in further trouble after it emerged that its Global Alpha hedge fund lost 22.5% of its value last month, the Telegraph reports.
The one-month decline - the fund's steepest in its 12-year history - means the fund has fallen by a third in 2007, and is down 44% from its March 2006 peak.
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till