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Banks £50bn injecrtion - Financial Services Recruitment - Emu Consulting

Banks £50bn injecrtion

The injection of £50bn in to the market by the Bank of England is timely yet it may not be enough to stem sub-prime writedowns and the need for rights issues, industry experts have claimed.

The Bank of Englands announcment, which will allow Banks to temporarily swap assets for UK treasury bills, has been welcomed by the financial services industry yet economists warn this may not be enough to staunch bank's losses.

Nick Bate, UK economist for Merril Lynch, said although positive the move did not guarantee to stem the flow of writedowns incurred due to sub-prime exposure.