The Treasury is set to give the go-ahead for a Government-backed plan to help mortgage companies start lending again in the wake of the credit crunch, The Telegraph reports.
Alistair Darling, the Chancellor and the Bank of England have provisionally agreed to the Bank taking over mortgage loans sitting on lenders' balance sheets in order to increase the liquidity in the money markets. The Bank would grant Government bonds in exchange for securities backed by UK mortgages. It is the first time that the British government has acted so clearly to try to kick-start the markets. Gordon Brown will tomorrow meet Ben Bernanke, the chairman of the US Federal Reserve, in Washington to discuss what more can be done. A HANDFUL OF the City’s leading hedge fund managers...
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