Originally published Wednesday, November 19, 2008 at 9:00 AM
Brown hints at more steps to get credit flowing
Prime Minister Gordon Brown said Wednesday that further measures may be needed to encourage banks to resume a normal flow of credit to small British businesses and homeowners.
Prime Minister Gordon Brown said Wednesday that further measures may be needed to encourage banks to resume a normal flow of credit to small British businesses and homeowners.
Brown came under pressure Wednesday from opposition lawmakers who complained that the government's 37 billion pound ($55.5 billion) recapitalization program for banks had not yet eased the flow of credit.
Brown said the government was monitoring banking activity, and meeting frequently with bankers to try to resolve issues which continue to restrict credit during the global financial crisis.
"We are ready to take further measures if necessary," Brown said.
Brown's spokesman Michael Ellam told reporters new measures are likely to be announced on Monday, when treasury chief Alistair Darling publishes his pre-budget review.
"This is obviously something we keep under constant review, that's something that the chancellor (Darling) will address in his pre-budget review," Ellam said.
The government's plan to inject capital into banks by taking equity stakes was taken up by HBOS, Lloyds and Royal Bank of Scotland Group PLC last month.
"We are in discussion with the banks ... about, first of all, how HBOS, Lloyds TSB and Royal Bank of Scotland can achieve their promise that they will have activity for lending and marketing of lending at the level of 2007. Secondly, how all the banks can resume funding," Brown said.
"We will be bringing forward proposals very soon," he added.
Brown said the government had expanded a small business loan program and noted that the Bank of England had slashed the base interest rate from 4.5 percent to 3 percent.
"That must flow through to small businesses as it has to homeowners," Brown said of the rate cut.
Copyright © 2008 The Seattle Times Company
An 802.11n upgrade could make a big difference
Retailers opening doors on Thanksgiving Day
Google makes concessions on digital book deal
Critics want to block Comcast-NBC deal
Google submits revised book settlement

Opening day at Crystal Mountain
Skiers crowded the slopes at Crystal Mountain for one of the resort's earliest openings.
Follow seattletimes.com on Twitter
Get the top stories on-the-go by following seattletimes.com on Twitter. We'll tweet the news and information you need around the clock and keep you up-to-date no matter where you are. Go to www.twitter.com/seattletimes to sign up now.
nwjobs

Post a comment

Michelle Goodman blogs about work/life balance.
How to tell your office you're gravely ill
Post a comment
nwautos

Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment
- Homeless man, 46, arrested in Greenwood arsons
- KVI talk radio host off the air as of Thursday
- Steve Kelley | ESPN's Bill Simmons gets us: He hates Clay Bennett, too
- Police investigate videotaped arrest
- Seattle U. Men's Hoops | Big recruit goes from Huskies to Redhawks
- Mariners sign Jack Wilson to 2-year contract
- Razor found in muffin an accident, 'mortified' baker says
- Suspect's family shaken by slaying of police officer
- Mountlake Terrace woman reports razor in muffin
- Ivar's undersea billboards a hoax devised as marketing ploy
- Police investigate videotaped arrest
631 - Seattle man to pack a pistol into community center to protest mayor's ban
231 - Light rail to airport to begin Dec. 19
177 - GOP clueless as families struggle with health care
173 - KVI talk radio host off the air as of Thursday
139 - Mariners sign Jack Wilson to 2-year contract
128 - Wright State game thread
97 - Person of interest in custody in connection with Greenwood arsons
96 - Rang says Locker not ready for NFL
85 - Licata looks at boosting traffic-ticket revenue
72
- Light rail to airport to begin Dec. 19
- Homeless man, 46, arrested in Greenwood arsons
- Ivar's undersea billboards a hoax devised as marketing ploy
- Steve Kelley | ESPN's Bill Simmons gets us: He hates Clay Bennett, too
- KVI talk radio host off the air as of Thursday
- Washington in race for federal education funds
- Light rail to airport to begin Dec. 19
- An 802.11n upgrade could make a big difference
- Police investigate videotaped arrest
- Goodwill's Glitter Sale is Nov. 14-15





