Bank of England to cap mortgages - papers

The Chancellor will announce that he will hand a host of new controls to the Bank to prevent another financial crisis. According to the Telegraph, the powers will mean that, for the first time in the modern era, the Bank could impose restrictions on the amount banks can lend. The reforms, to be sketched out in the Chancellor's first Mansion House speech in the City of London, represent a revolution for the City, since in the past banks have always had freedom to decide to whom they can lend. The Bank and its Governor, Mervyn King, would be able to prevent banks from lending too muc...