The Bank of England extended secret emergency financing to Royal Bank of Scotland and to what was then HBOS during the banking panic last October, indicating the two banks were even closer to collapse than had been thought.
The Bank of England announced plans Thursday to pump another £50 billion ($84 billion) into the UK economy in a fresh effort to steer the country out of a recession which it admitted had been "deeper than previously thought."
Visions of apocalypse -- financial and environmental -- hung over London on Wednesday, as protesters gathered in the streets of the city's financial district on the eve of the G-20 summit of world leaders.
The dollar rose against the euro and lost ground against the pound Thursday after the European Central Bank held interest rates steady and the Bank of England cut its key rate by half a percentage point.
Recession fears and worries about corporate profits swept stock markets around the world Thursday, but European indexes partly recovered after the Bank of England and European Central Bank slashed lending rates.
The Bank of England will introduce new emergency overnight borrowing facilities for banks starting Monday and tighten disclosure rules as it attempts to improve access to liquidity and remove the stigma attached to borrowing from the central bank
The European Central Bank and the Bank of England both left their benchmark interest rates unchanged Thursday as they ponder how best to steer their economies between the shoals of mounting inflation and slowing growth
The Bank of England will inject funds into the longer-term money market, it said, marking a major U-turn in its policy on bailing out struggling banks and fueling accusations that British authorities have mishandled the credit crisis.
When England's century-old Northern Counties Permanent Building Society merged with the Rock Building Society to become Northern Rock in 1965, it's hard to imagine it was too troubled by the health of the U.S. mortgage sector. But times change. The tight squeeze in the global credit markets has struck another financial institution, and forced another central bank to intervene.
Barclays PLC has tapped the Bank of England for an emergency loan for the second time this month, borrowing $3.2 billion after a failure in a trading system, according to a person familiar with the transaction.
The Bank of England raised interest rates by a quarter percentage point to a six-year high of 5.75 percent Thursday - the fifth increase since last August - as risks to inflation are still on the upside.