View more on these topics

Ex-MPC member slams SLS mistake

A leading economist and former Monetary Policy Committee member has branded the decision to attach a deadline to the Special Liquidity Scheme as a tragic error.

Willem Buiter, professor of European political economy at the London School of Economics and Political Science, says the Bank of England made a fatal mistake in announcing it planned to close off access to the SLS in October.

Addressing delegates at the annual Council of Mortgage Lenders conference, Buiter says: “An incredible mistake was made in announcing in the summer that the SLS would close in October.

“That was really the death sentence for HBOS.

“When you announce the closing of a facility by a specific date you court a focal point for speculators to co-ordinate on.

“It is a tragic error.”

Buiter says the answer to the success of the SLS in restoring the flow of lending lies in lifting any kind of scheme limitations.

He adds: “What we need is an SLS on steroids.

“It needs to be open-ended in terms of time, uncapped in terms of amount, and allow for new originations. If it doesn’t have all three features it won’t work.”


Exact launches website

Exact, the reincarnation of edeus, has rolled out its website today with full product details.

Covered bond dealers covered

The Securities Industry and Financial Markets Association (SIFMA) has expanded coverage of the fixed income markets by launching the SIFMA European Covered Bond Dealers Association (ECBDA).

A question of service

Roy Armitage, head of credit, LendInvest Selling a loan is the part of a lender’s workload most visible to brokers and borrowers. Just as crucial – but less frequently observed – is how that lender services that loan. A commitment to quality servicing is one that’s front and centre for us at LendInvest and it’s […]


News and expert analysis straight to your inbox

Sign up