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SLS loan repayment fears are keeping banks from lending

I was interested to read last week that Labour MP George Mudie has hit out at what he describes as the FSA’s reign of fear on mortgages, but why is everyone trying to turn the regulator into a scapegoat?

Surely everyone knows the real reason that banks aren’t lending is because they are afraid of the cash crunch coming when they have to repay the funds they borrowed under the Special Liquidity Scheme.

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