HBOS bails out Grampian as crunch hits UK - papers 22 August

HBOS, the parent company of Halifax and Bank of Scotland, said it would itself repay maturing debts for its Grampian commercial paper unit because the cost of borrowing in the short-term market was too high. The asset-backed commercial paper market has ground to a halt as investors have steered clear of short-term loans supported by mortgages and other financial assets. HBOS said less than 1% of Grampian's assets were in "old vintage" sub-prime, and that it had no exposure to more risky sub-prime loans made in the past two years. The Bank of England, meanwhile, revealed that it lent £314...