Mervyn King appeared to be heading for a second term as Governor of the Bank of England last night after ministers turned a blind eye to recent criticism of their handling of the credit crisis attributed to Bank officials, reports The Times .
Well-informed sources in No. 10 and the Treasury told The Times last night that it was a “reasonable assumption” that within the next few weeks Mr King would be reappointed for another five years from next June.
Gordon Brown and Alistair Darling, the Chancellor, have apparently agreed that a move to change Governor in mid-stream would damage the stability that they claim is at the heart of their economic policy.
MERVYN KING HAS LAUNCHED a major broadside at the banking sector, labelling it "dangerous" and urging politicians to impose fresh regulations on the City's financiers, The Telegraph reports.
In comments which will aggravate the already-strained relationship between the Bank of England Governor and the Square Mile, Mr King accused the financial sector of "hubris" by taking excessive risks with assets in recent years.
Calling for more regulations on the way banks arrange their liquidity positions - how much cash they set aside for emergencies - Mr King said: "We need to recognise that banks can be rather dangerous institutions at times."
BRADFORD & BINGLEY, the buy-to-let specialist, has approached Northern Rock about buying assets from the troubled lender, The Times reports.
According to reports, the mortgage lender is not looking to buy the troubled Newcastle-based bank outright, but could become part of a private-sector rescue package.
It emerged yesterday that taxpayers' exposure to Northern Rock had reached £56bn following a controversial move by the Treasury to extend its guarantee to cover hundreds of millions of pounds of the bank's obligations in the wholesale markets.
BETTER-THAN-EXPECTED figures brought some cheer to the market yesterday as economists reiterated their predictions for an early cut in interest rates, The Independent reports.
The Office for National Statistics revealed that consumer price inflation, the Government's target measure for inflation in the UK, was stable at 2.1% in November, unchanged from October and below analyst forecasts of 2.2%. The number was also well below public expectations, which pegged the current rate at 3.2%, according to a Bank of England survey of public attitudes to inflation.
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
Feasibility study due
'Let’s be bold enough to demand change'
Joint life second death option added to relieve tax burden on couples gifting assets
Backed by Schroders, LGIM and the IA
New system for funds without without three-year track record