Lots of people have been perplexed over the timing of the Bank of England’s admission that it extended £61.6bn of loans to prop-up Royal Bank of Scotland and HBOS. Why was it disclosed this week?
Well, the main reason is that the terriers at the National Audit Office were about to call the Bank’s bluff by revealing the secret loan in an upcoming report. Mervyn King merely decided it would look better for the Bank to confess independently. Read more