Alistair Darling To Be Advised Not To Follow US Mortgage Route
After commissioning former HBOS chairman Sir James Crosby to look into ways of protecting and rebuilding the UK mortgage market it seems as though Alistair Darling will be advised not to go down the US route of Fannie Mae and Freddie Mac, two US mortgage agencies which handle the vast majority of US home loans.
It has been reported that the two US agencies are involved in packaging and repackaging one in every two US mortgages, selling on the parts to investors in the form of securitisation bundles. This idea has grown popular in the UK after the recent problems but on reflection it looks as though there are as many dangers as there are benefits. Many people are blaming the sale of poor quality securitisation bundles as the main reason for the US credit crisis and very wary that the same might occur in the UK in the future.
The bottom line seems to be that there is no simple answer to the ongoing mortgage market crisis and market forces will always come into play. Whether Alistair Darling decides to go down this route, looks elsewhere or decides to leave the markets to their own devices is debatable.
Share this..
Related stories
Free banking is disappearing at an alarming rate
As we hear news that Egg, the Citibank owned credit card brand, is set to reintroduce an annual fee for holders of the company's credit card it appears that the days of free banking in the UK are fast disappearing. While there are those who believe that free banking was never actually available in the UK, with UK banks using consumer deposits to fund their other operations, we will start to see th...
Read MoreUK savers set for full refund from Icelandic account
In a move which was welcome as it is unexpected it has been revealed that UK savers are likely to receive a full refund on the funds held through Icesave, the online division of Landsbanki, the Icelandic bank which went under.
The compensation scheme has been arranged by the FSA in the UK and in conjunction with the Newcastle Building Society it looks as though UK savers will be com...
Is International Power on the shopping list of GDF Suez
French utility giant GDF Suez is said to be in talks with leading UK power provider International Power in what could turn out to be a very difficult situation for the UK government. While no formal bid has been forthcoming as yet it is believed that the French authorities, who hold a 35% stake in the giant French utility company, have given the go-ahead for a bid for International Power. But how...
Read MoreRetail Sales In July Expected To Fall By 0.3%
News that the average forecast for July retails sales is a decrease of 0.3% has been met with concern by many in the investment markets. Falling retail sales do not bode well for the future of the economy and while the growth rate for retails sales over the year is still 1.7% it looks set to move significantly lower in the weeks and months to come. Further falls, which are now discounted by many...
Read MoreVince Cable attacks appointment of Bob Diamond
As many people have expected, Vince Cable the coalition government's business secretary has today attacked the forthcoming appointment of Bob Diamond as chief executive of Barclays Bank group. He believes that by mixing those with investment banking and retail banking experience there may be further problems ahead for the UK banking arena unless some of the larger corporations can be broken up....
Read More