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 shared an extraordinary payout of more than $2bn last year as star dealers profited from the meltdown in America’s sub-prime mortgage markets, according to The Times.
Top of the UK list of mega-earners for the year were Noam Gottesman and Pierre LaGrange, the two co-founders of GLG Partners, the $24bn London-based hedge fund.
Mr Gottesman and Mr LaGrange were paid $350m each, according to Alpha, a hedge fund magazine that yesterday published a list of the 50 best-paid managers worldwide for 2007.
The paydays for the two executives only marginally overshadowed the $300m in management and performance fees collected by Greg Coffey, GLG’s emerging markets specialist. GLG is locked in a battle to hold on to Mr Coffey, who runs about $7bn of its funds and generated about 60% of its performance fees last year.
THE VALUATION GAP between BHP Billiton's £75bn hostile offer for rival Rio Tinto and what the latter would be willing to accept is widening and will now only be rescued by a vastly improved bid, Rio's chief executive said, The Independent reports.
Speaking on the publication of Rio's quarterly production figures, Rio's head Tom Albanese said: "The gap is continuing to widen, now and in the future. We are continuing to pull ahead. We are growing at twice the rate that BHP is."
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