When the Bank says there going to buy up

[timetraveller]

bad debts ..

How do we know what bad debts are they buying , recently the Bank of England announced it was buying up another 75billion? worth of bad debt , so how do we as the consumer know what bad debt the banks is buying and will such info be made accessible to the public

[Mr Gently Benevolent]

bad debts ..

How do we know what bad debts are they buying , recently the Bank of England announced it was buying up another 75billion? worth of bad debt , so how do we as the consumer know what bad debt the banks is buying and will such info be made accessible to the publicProbably dripped out for public consumption then published in a weighty volume not available for download. Some of the treasury reports surrounding Black Wednesday (http://en.wikipedia.org/wiki/Black_Wednesday) have D-notices on them allegedly.p-)

[Gat0r]

The Fed was buying toxic assets such as mortgage backed securities and I'm sure others as well. What is really a sham is that the Federal Reserve is a private bank so congress has no authority to audit them to see what they are up to, but that could change though as Rep. Ron Paul has introduced H.R. 1207 which will require a complete audit of the Fed's operations, I suppose you're in England, i'm not sure if there some kind of freedom of information legislation that they comply by, I doubt it because the Fed doesn't.

[Wha_Dar]

A DA-Notice wont be issued for economic information. The DA is for Defence Advisory and are requests. There might have been a request from the Exchequer to limit the amount of information released.

[sinophile]

bad debts ..

How do we know what bad debts are they buying , recently the Bank of England announced it was buying up another 75billion? worth of bad debt , so how do we as the consumer know what bad debt the banks is buying and will such info be made accessible to the public

Did they actually claim to buy the debt, or simply to accept it as collateral in exchange for loans? Be careful of thinking of 'toxic' assets as having zero or negative value. The accounting rules for a lot of these assets mandates the asset be downgraded even if a very small percentage of its 'ingredients' are non-performing.

Don't be surprised if that accounting rule is changed and the UK (and US) govt. balance sheets suddenly look a lot healthier.

[deagle]

can we even trust banks anymore ?

[maw]

The Fed was buying toxic assets such as mortgage backed securities and I'm sure others as well. What is really a sham is that the Federal Reserve is a private bank so congress has no authority to audit them to see what they are up to, but that could change though as Rep. Ron Paul has introduced H.R. 1207 which will require a complete audit of the Fed's operations, I suppose you're in England, i'm not sure if there some kind of freedom of information legislation that they comply by, I doubt it because the Fed doesn't.

the fed is legally obstructed from buying assets, huge potential for conflict of interests. the fed circumvented these restrictions (broke the law) by setting up a pair of straw companies...

[Mastermind]

bad debts ..

How do we know what bad debts are they buying , recently the Bank of England announced it was buying up another 75billion? worth of bad debt , so how do we as the consumer know what bad debt the banks is buying and will such info be made accessible to the public


You don't know...and NO it won't be made available to the public...now, go sell pencils or apples on a street corner and leave the big banks and their political cronies alone.

[sinophile]

the fed is legally obstructed from buying assets, huge potential for conflict of interests. the fed circumvented these restrictions (broke the law) by setting up a pair of straw companies...

Huh? What are you talking about? What two companies?

If you're referring to Freddie and Fannie they were established by Congress, not by the Fed. Also, I believe the Fed has taken some of these assets as collateral against loans - which is not against the law. Finally, Congress sets the law and has given the authority necessary for the Fed to do what they think is necessary.

In other words, I think you're not well informed about this. Oh, and the poster asked about the UK central bank.