We finally have the details of the emergency liquidity assistance, or ELA, provided by the Bank of England to RBS and HBOS at the peak of the crisis last year.
The figures, which were deemed too sensitive to be released at the time, are now seen fit for public consumption given that RBS has signed up for the Asset Protection Scheme and Lloyds Banking Group has embarked on an alternative capital raising strategy.
And here are the key points:
From 1 October 2008 the Bank provided ELA to HBOS and from 7 October also provided ELA to RBS. The RBS facility was repaid by 16 December 2008, and the HBOS facility by 16 January 2009.
Use of the facilities peaked at £36.6bn for RBS (on 17 October) and at £25.4bn for HBOS (on 13 November). Total use of ELA across both banks peaked at £61.6bn on 17 October. At this point the two banks provided the Bank with collateral (residential mortgages, personal and commercial loans and UK government issued debt) with a total value in excess of £100bn. The banks were charged fees for the use of the facilities.
As a reminder the Treasury’s capital investments in RBS, HBOS and Lloyds TSB amounted to almost half that at £37bn.
Interestingly, use of the Bank of England’s ELA peaked almost four days after the government measures were announced on October 13 — meaning it took Gordon Brown a whole five days to save the world.
Related links:
RBS – some facts & figures - FT Alphaville
CDS report: RBS singled out – FT Alphaville
Pestowire: HBOS/Lloyds will happen - FT Alphaville