'Frenzied borrowing' threatening City - papers 20 Dec

Richard Lambert, director general of the CBI, yesterday argued the City could be particularly vulnerable in the event of a serious credit crunch because London does not have a large domestic economy, unlike the United States, says the paper. Lambert threw his weight behind warnings from the Bank of England over the dangers fostered by a so-called “search for yield”, in which cheap money and low rates of return on many assets tempt investors to seek out higher returns from riskier strategies. INSTITUTIONAL INVESTORS are entering the New Year with large amounts of cash to pour into booming...