Royal Bank of Scotland and HBOS came within minutes of closing cashpoints and normal business operations, the Bank of England confirmed on Tuesday, revealing that it extended £61.6bn in emergency funds to the banks in October last year. Paul Tucker, the Bank’s deputy governor, told the Treasury select committee that the Bank began a “classic lender of last resort operation” on Oct 1 with loans that peaked at £61.6bn before being repaid by January, after the government guaranteed other forms of banks’ funding and injected capital into both banks.

This entry was posted by Gwen Robinson on Wednesday, November 25th, 2009 at 4:52 and is filed under Capital markets. Tagged with bank of england, hbos, rbs. Edit this entry.