Bank of England to rescue UK lender

Sights

The Bank of England will on Friday provide emergency funding to rescue Northern Rock, a leading UK mortgage lender that has fallen victim to the credit squeeze triggered by the US subprime meltdown.

Northern Rock, which had more than $200 billion in assets at the end of June, is the first UK financial institution to be propped up since the Bank of England in 1998 revised the rules under which it would act as a lender of last resort. The Bank is expected to say on Friday that a similar facility is available to any other institution facing short-term difficulties.

Details of the rescue emerged late Thursday after a relatively calm day on global markets. US stocks closed higher after Countrywide, the US mortgage giant that has had trouble borrowing in the money markets, secured $12 billion additional funding from its banks. The cost of three-month borrowings in the interbank market fell slightly for dollar, euro and sterling instruments after soaring recently. (ftalphaville.ft.com)

More Companies Take Action Against Corruption Analysis

More Companies Take Action Against Corruption

Karácsony Still Winner of Budapest Mayoral Election After Re... Elections

Karácsony Still Winner of Budapest Mayoral Election After Re...

2 Major Ground Handlers at Budapest Airport Join Forces Transport

2 Major Ground Handlers at Budapest Airport Join Forces

Summer Camp Prices Have Increased 10-15% Tourism

Summer Camp Prices Have Increased 10-15%

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.