Bank of England had £150 billion emergency fund in place

It has been revealed this weekend at the Bank of England had an emergency fund in place which totalled £150 billion. Just over £60 billion for this particular fund was used to shore up Lloyds bank and Royal Bank of Scotland at the height of the financial crisis last year but news that the bank had a further £90 billion to hand shows how difficult the situation had become.

Slowly but surely we are starting to see the workings of the Bank of England emerge from the shadows and many people are surprised at the amount of funding which had effectively been put aside to bail out the banking system. It appears that the UK government was seriously concerned that the system was on the verge of crashing having taken Northern Rock and Bradford & Bingley back under government control and effectively bailed-out Lloyds bank and Royal Bank of Scotland.

Quite how this information has taken 12 months to leak into the public domain is a bit of a mystery but the inner workings of the Bank of England and indeed the UK government are still shrouded in mystery for the average man in the street.