Bank Of England Plan Addresses Credit Crunch

Law360, New York (April 21, 2008, 12:00 AM EDT) -- The Bank of England launched a plan on Monday to bring much-needed liquidity to the nation's home loan markets by letting banks temporarily exchange some of their mortgage-backed securities for U.K. treasury bills, while the European Union is reportedly investigating the plan.

A spokesperson for the EU's competition watchdog said on Monday that the EU is “in touch” with British authorities about the plan, it is “far too early to start speculating about whether it is state aid” under the EU's competition rules, Agence France Presse...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.