The banks join forces

Bank across the world are joining forces to prevent a global recession. The Bank of England the U.S. Federal Reserve and European Central Bank and their counterparts have pumped £55 billion into the money markets.

100% mortgages lender Northern Rock was the first victim of the bad credit mortgages crisis. This new move goes to show that the banks are worried that other lenders might go the same way as the Rock.

The banks are working together to prevent any prospective sharp tightening in credit conditions. Experts estimate the record defaults on bad credit mortgages to Americans with poor credit histories could lead up to £200 billion of losses at global banks.