The Bank of England has imposed a permanent news blackout on its £50bn-plus plan to ease the credit crunch.
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| 'Lesser of two evils': The Bank of England will guard the names of credit-crunch banks with unprecedented levels of secrecy. |



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Requests under the Freedom of Information Act are to be denied. Details will be kept secret even after 30 years - the period after which all but the most sensitive state documents are released.
Any Bank of England employee leaking the names of institutions involved will face court action for breach of contract.
Even a figure for the overall amount advanced will not be published until October. Meanwhile the Bank is expected to issue at least £50bn of Treasury bills to banks in exchange for their mortgages - entirely in secret.
This hypersensitive official stance is thought to be a response to the events of last year when a huge stigma was attached to any lender suspected of going to the Bank for cash help.
The scheme is intended to steady the markets, but it is feared that reports of banks making widespread use of the facility could trigger further instability.
Barclays and HBoS have both confirmed they will use the Bank of England scheme. 'We welcome the Bank facility and we will participate in it,' confirmed Andy Hornby, chief executive of HBoS.
Other banks declined to comment, but it is expected that this week all of the leading banks, with the exception of Lloyds TSB, will tender some of their mortgages to the Bank of England.
HBoS confirmed last week it had packaged up £9bn of mortgages ready either for securitisation - in effect, selling them on in the wholesale financial markets - or to be offered to the Bank in return for Treasury bills.
The scheme, drawn up by King and approved by Chancellor Alistair Darling, aims to improve banks' liquidity by temporarily swapping bundles of mortgages and credit card debt for Treasury bills, which are short-dated Government debt that matures within nine months.
The scheme will run for three years so these bills will be replaced by new ones when required.
Under the plan, bills will be exchanged only for securities rated triple-A - the highest possible grade of security - by at least two of the three big ratings agencies, Fitch, Moody's and Standard & Poor's.
It would not normally be considered acceptable for big companies to arrange billions of pounds of financial support without telling their shareholders.
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But one source close to major institutional investors said: 'I can see why there may be a case for secrecy.
'It may be the lesser of two evils.'
The £50bn or more of Treasury bills involved will dwarf the £17.6bn currently in issue, but the authorities are adamant this will not destabilise the Government debt market.
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The government may not wish people to know who these banks are, but they assume we are all dumb! Check out bank shares on the LSE and see how they are now going up or down by percentage points divorcing from each other - then you realise that the city fly boys know exactly who is getting what.
- Peter, Oxfordshire
Is the following scenario possible:
Banks swap mortgages for iron cast government bonds, then engineer a property crash so that they can buy back their mortgages with the bonds and keep the difference?
We now have a situation where it is in the banks' interest to actively pursue a property crash of epic proportions.
- Karl, Hampshire
BoE, Federal Reserve - all private banks feeding into the move to a new world order, producing Money, no longer backed by gold, just paper representing digits on a computer - worthless! An illusion. He who controls the money supply controls the world.
- H Phillips, South Gloucestershire
This BoE lending out £50+ of our money to banks which caused credit inflation and credit crunch due to their extreme greed is an example that all parties involved are in cahoots. The other day Marvin King, the BoE governor, was sanctimoniously complaining about excessive bonuses paid in recent past to the City bankers to be the reason behind the credit crunch. Mr King, have you and your henchmen in BoE been sleeping during this time? Could not you see what was coming? Do you want us to believe that you and other BoE principals are that ignorant and stupid?
I think only a class-action law suit against BoE and the banks for complete disclosure and government lending out money directly are the answers. Otherwise these blood-suckers are going to take every drop of our blood. BoE is a ruse. Most of the people in the UK think that it is a government organisation. It is the largest for profit private bank. I want BoE to respond to my charges.
- Dr Alok K Bhattacharyya, London
Gold Standard Now, Gold Standard Now, Gold Standard Now
- Blueyblogger, Cairns Australia
This is, quite simply, an outrage. Right in front of the peoples eyes - a media blackout. Announced. When will the revolution happen?
- R, St Albans
And for Brits, check out if you can, the London Herald, February 8, 1920 where Sir Winston Churchill published an article condemning the Illuminati and warning the British public of a worldwide conspiracy against morality. For our American cousins, one year later Woodrow Wilson made three radio broadcasts warning of growing Illuminati control over the US banking system.'There is a power so organized, so subtle, so complete, so pervasive, that none had better speak above their breath when they speak in condemnation of it'. John F Kennedy made a similar speech. What happened to these great men who dared speak up? Two consigned to the dustbin of history, one murdered. Thomas Jefferson, one of the founding fathers of the United States, having the foresight to state that 'all men are created equal, that they are endowed by their creator with certain inalienable rights, that amongst these are life, liberty and the pursuit of happiness' knew all those years ago - time now for retribution.
- Peter, Oxfordshire
Dr Ashley, Huntingdon. Northern Rock was not about saving a bank, but saving voters confidence in a venal, greedy government in the Labour heartlands - where many of the people dealing with this bank reside! They knew that labour voters with interests in this bank would vote anything but labour for the rest of their days if they let it fail, had it been based in Surrey with Surrey folk the main users, you can bet your bottom dollar they would have left it to fail.
- Peter, Oxfordshire
It seems a similar scheme, is going on here on the other side of the Atlantic. Both schemes (you may call them scams, if you prefer) rely on you the tax payer to bail out the very same banks that have been scamming us all along. Well, if you had enough you may consider hiding your money so that the cash hungry indecent politicians have no taxes to collect and no tricks left in their hats.
- Costas, Connecticut
In my opinion, it's possible that it's not just stigma they are concerned about.
Can it be more subtle than that.
This suggests to me that the magnitude of assistance to a particular bank will reflect on the irresponsibility/ financial instability of that bank.
I want to know how much the banks are getting.
Then steer well clear of those after the larger amounts.
Or better still, avoiding all banks using this system.
For my own security, surely I have the right to know in this so called democracy.
However, thinking it through a bit more.
The BoE may keep tight lipped, but there will be enough employees at banks who will leak the information, especially when they are made redundant.
- Np, England
That this is to be done in secret is not what bothers me so much as where this £50bn is coming from. I suspect it is being created out of thin air, which means tax by inflation for the general public. Why should we have to pay for the banks mess? Let them go bust and they might stop acting like cowboys
- Anonymous, anonymous
That this is to be done in secret is not what bothers me so much as where this £50bn is coming from. I suspect it is being created out of thin air, which means tax by inflation for the general public. Why should we have to pay for the banks mess? Let them go bust and they might stop acting like cowboys
- Anonymous, anonymous
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