The 'Standard' comments that:
The new mortgage market by some measures has shrunk by more than two thirds since last summer. Possibly as much as £80 billion of lending that was previously available for house purchase has disappeared thanks to the credit crunch. So this limited package will achieve little.Edmund Conway writes in the Telegraph that the banks have already issued £45bn of mortgage-backed bonds in the quarter to June - and that it's likely the £50bn Special Liquidity Scheme launched by the Bank of England is probably already exhausted. RBS, Barclays and HBOS have also already raised £20bn of new equity capital. Brown's £1bn package is therefore not much more than a fart in a gale.
I still think there are still too many banks and too little money. Hindsight is a wonderful thing, but I wonder if we wouldn't now be mush better off if the government had allowed Rock to collapse? Some commentators reckon at least one of the big four - HBOS, Barclays, RBS, HSBC - will have to go before things start to get better.
Just picked this story up. At 4.15 Monday before last, 5 minutes before the 4.20 deadline for inter-bank loans, Barclays asked HSBC for £314m. It takes 3m to do the transfer, leaving HSBC only 2m to make the loan decision. It was seconds late. Barclays immediately went to the Bank for the £314m. Cock-up or Barclays playing silly buggers? You decide.