BoE denies it rejected funding for NRock bidder

The Bank of England said it refused a £30bn funding facility, reportedly to allow Lloyds TSB to take over the bank, because it could not accept demands to remove punitive lending penalties. During a Treasury Select Committee meeting on Tuesday, Applegarth told MPs a takeover offer had collapsed when the Bank refused to offer a £30bn facility to help fund Northern Rock. However, the Bank of England says the loan, which newspapers claim was requested by Lloyds TSB, was to stretch over one or two years and with no penalty rate, which the Bank says was unacceptable. A statement from the B...