The Bank of England is to print more money in a further effort to get the banks to get lending again. (The Treasury allowed an initial spend of £150bn in March this year).
Perhaps as a result of printing so much new money, the cost of UK Gilts or, stakes in long-term Government debt, is rising. This means they give less value for money to investors and may as a result struggle for sales against government debt from other countries, such as Germany or the US.
The Chancellor of the Exchequer has unveiled new plans for regulation of the banks. He has been criticised for not enforcing a separation of of high street, or retail and investment banking. Many critics feel the crossover of the two jobs has been a major contributory factor in the collapse of most of the UK’s independent banking industry because of reckless investment decisions, particularly in the property and mortgage markets.