Tuesday, 15 April 2008

Brown meets bank chiefs

So Gordon wants to use his clunking fist on the bank chiefs. I wonder if he is calling in Ron 'Non-Dom' Sandler head of Darling's bank Northern Crock?

Apparently the banks are not passing on the Bank of England rate cuts. This is because the inter-bank rate is still stuck at around the levels before the rate cuts.

So what can be done? Well the banks need to have access to cheaper funds.

This is possible if the Bank of England and the government act decisively now and listen to what the bank chiefs require - a cheap money line from the Bank of England.

I predict the usual dither and delay. We'll see.

In actual fact the government giving the deposit to first time buyers, nationalising a bank and funding the mortgage banks all sounds a bit controlling, doesn't it?

Update at 2.30pm - yes I was right. Nothing has come from the meeting. No rush though chaps. Take your time. We'll just let the homeowners suffer.

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