FT: UK lenders seek help to fund home loans

Mortgage lenders are raising pressure on the Bank of England and the Treasury for measures to help them raise funds to provide loans to homebuyers – and are warning that without support, the level of lending will plummet.

Industry groups such as the Council of Mortgage Lenders, the European Securitisation Forum and private banks have urged the UK authorities to back the securitisation industry, the sector of finance that enables bankers to turn loans into bonds and other instruments. (Source)

What's good for the Rock is good for the rest, I suppose. Apparently, Mervyn King was fretting about moral hazard a few months back, but it would seem we have a Government more bothered about short-term damage limitation than long-term economic distress.