BoE denies proposing to buy mortgage securities
The Bank of England denied a report in the Financial Times on Saturday that it was proposing using public funds to make mass purchases of mortgage-backed securities in order to ease the credit crisis.
By Agencies |
LONDON: The Bank of England denied a report in the Financial Times on Saturday that it was proposing using public funds to make mass purchases of mortgage-backed securities in order to ease the credit crisis.
"Central banks, including the Bank of England, have been looking at ways to ease the strain," a BoE spokesman said.
"The BoE is not, however, among those reported today to be proposing schemes that would require the taxpayer, rather than the banks, to assume the credit risk."
"We can, however, confirm that we have been examining a number of other options. But it is too early to go into any detail," the spokesman said.
The Financial Times said central banks on both sides of the Atlantic were in talks about the feasibility of buying up mortgage-backed securities as a way of ending the global credit crisis. It said the Bank of England appeared "most enthusiastic" to explore the idea.
"Central banks, including the Bank of England, have been looking at ways to ease the strain," a BoE spokesman said.
"The BoE is not, however, among those reported today to be proposing schemes that would require the taxpayer, rather than the banks, to assume the credit risk."
"We can, however, confirm that we have been examining a number of other options. But it is too early to go into any detail," the spokesman said.
The Financial Times said central banks on both sides of the Atlantic were in talks about the feasibility of buying up mortgage-backed securities as a way of ending the global credit crisis. It said the Bank of England appeared "most enthusiastic" to explore the idea.
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