Lib Dems challenge Govt over bank lending - papers

The issue threatens to embarrass the Labour Party before an election expected in May if the figures show the banks have failed to meet pledges to boost lending to home buyers and companies by a promised £39bn, Reuters reports. Britain's two largest retail banks signed legally binding agreements last February and March to increase their mortgage and business lending in return for the government insuring £585bn of potentially bad debts. But the two banks have fallen "well short" of the lending agreements, Liberal Democrat treasury spokesman Vince Cable will say in a speech at an event i...