Tag Archives: Bank of England

Forbes – Shah Gilani – It’s Not Libor Stupid, Central Banks Are The Problem – 7 July 2012

( Lucas :  The blame game has started that makes it only interesting and gets us in the blaming more and more insights in those who have robbed us, deceived, enslaved us. The truth will come out whatever way. Soon the old will vanish from the screens and out of existence. We will see the new emerging.)

The Libor scandal is about to get a whole lot worse. And, that’s the good news.

Not only are at least twenty more big banks under investigation as part of a massive fraud to manipulate interbank lending rates that affect some $800 trillion in loans and derivatives, but the Bank of England is about to take center stage in the scandal. Continue reading

Banking Regulators Drop Libor … Adopt New Standard – 5 July 2012

… New “Limor” Standard More Accurately Reflects Banking Practices

Given the loss of confidence in the big banks in the wake of revelations that they have been manipulating the world’s most important economic benchmark – Libor – regulators in the U.S. and UK have announced that they will abandon Libor and adopt a new standard. In the run up to the change in standards, Bank of England chief Mervyn King had called for a benchmark based on actual transaction prices. Continue reading

John Ward – Diamond Testimony : Slog Completely Vindicated By TSC Documents Placed In Evidence By Barclays – 4 July 2012

Whatever Diamond says this afternoon, all The Slog’s suspicions about Libor manipulation have proved entirely justified

Note these past Slogsposts:

September 8th 2010

‘Bob Diamond’s accession to the post of blue touch-paper igniter [CEO of Barclays Group] is a done deal. And another nail in the Coalition’s coffin….As long as they continue to be appeased, bankers will never learn to sniff the public mood…’ Continue reading

John Ward – LIBOR – BBC’s Preston Confirms Slog Central Bank Prediction – Diamond’s Select Committee Testimony To Be Crucial – 2 July 2012

How many beans will Motormouth spill?

Slog’s investment bank contacts call LIBOR ‘a joke’

Last Thursday, The Slog asserted as follows in relation to the LIBOR scam, under the sub-head ‘Is Bob Diamond being forced to apologise for something hatched way above his level?’: Continue reading

Mish/ Mike Shedlock – Casino Bar Shall Remain Open : ECB “On Standby” Promising Liquidity For Greek Election Fallout; Bank Of England Launches Two New Stimulus Packages – 15 June 2012

The message of the day is “damn the consequences, the casino bar shall remain open”, whatever it takes, no matter the consequences to taxpayers who will be responsible for the bar tab.

Bank of England Launches Two New Stimulus Packages

The BBC reports Bank shares jump on new business support plans Continue reading

John Ward – Euroblown : “To Hell With The Rules” Say Eurozone Members. Maybe Britain Should Be Saying The Same. Far Too Few Brits Are Aware Of Our EU Obligations – 21 May 2012

There is an inverse correlation between imminent poverty and the commitment to the Rule of Law. If ever you doubted that fact, then kop this from Poland’s finance minister Jacek Rostowski: he thinks the ECB should announce its intention to buy unlimited amounts of sovereign debt in the event of a Greek exit from EMU. As to whether this is against EU or ECB statutes, Rostowski describes the fundamental principle underpinning the role of central banking as “a moot point”. Continue reading

Start the Presses – Bank of England To Buy £75 Billion In Bonds As QE Resumes via HuffingtonPost.co.uk

Boe

The Bank of England is to print £75 billion to finance bond buybacks in a bid to stimulate the moribund British economy

Huffington Post UK      First Posted: 6/10/11 12:08 GMT Updated: 6/10/11 12:27 GMT

The Bank of England has announced a £75 billion extension to its asset purchase programme, printing money to buy back UK sovereign debt in a hope to boost the flow of capital in the economy.

Business groups had been pressuring the bank to extend the £200 billion programme it first launched in March 2009, as growth in the UK slows and sovereign debt concerns in the eurozone weigh heavy.

“The pace of global expansion has slackened, especially in the United Kingdom’s main export markets,” the bank said in its statement. “Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world economy threaten the UK recovery.”

On Wednesday, the Office of National Statistics had revised the UK’s growth figures down from a projected 0.2 per cent for the quarter to 0.1 per cent.

Analysts and economists had been expecting some form of additional QE, with most projecting that £50 billion would be released by November, after the September minutes of the bank’s monetary policy committee (MPC) showed that the consensus around holding back on more easing was weakening.

The release of £75 billion may suggest that the bank is more concerned than ever about the possibility of a sovereign event in the eurozone. The protracted eurozone crisis, and concerns that a sovereign default in Greece would cause other dominoes to fall and a rolling banking crisis engulfing the UK weigh heavy on markets and on businesses, who are struggling to obtain credit from banks worried about their capital levels.

The BoE has also changed its view on domestic growth drivers. Previously, the bank had indicated that the UK’s growth slowdown was due to “temporary factors” including the tsunami in Japan and the unusually large number of bank holidays around the Royal Wedding.

“In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated. The squeeze on households’ real incomes and the fiscal consolidation are likely to continue to weigh on domestic spending, while the strains in bank funding markets may also inhibit the availability of credit to consumers and businesses,” the Bank said on Thursday.

Business groups, which had been calling for a stimulus, welcomed the move.

Ian McCafferty, chief economic adviser to the Confderation of British Industry, said: “With the risks to the economic outlook increasing, the MPC has acted promptly by extending quantitative easing this month. This measure will help support confidence, but we need to recognise that its impact on near term growth prospects is likely to be relatively modest. Only once the turmoil in the eurozone is resolved will confidence be fully restored.”

Graeme Leach, Chief Economist at the Institute of Directors, said: “What did we want? More QE. When did we want it? Now. Near zero GDP and money supply growth made a compelling case and the Bank of England was right to launch QE2. It could be argued that the Bank of England was slow to introduce QE the first time, but thankfully it hasn’t made the same mistake twice.”

“It is evident that the MPC are becoming ever more concerned over the current weakness of the economy and the deteriorating domestic and global growth outlook,” Howard Archer, chief UK and European economist at IHS Global Insight said ahead of the meeting. “The MPC are also worried about the weakness and volatility of the markets, and the funding conditions for banks.”