Bank of England warns tensions in banking system at fever pitch

Andrew64

How does this warning from the BoE square with bank shares shooting up and talk of the first signs of recovery?

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4996806/Bank-of-England-warns-tensions-in-banking-system-at-fever-pitch.html

Tensions in the financial system are approaching the fever pitch they reached before the collapse of Lehman Brothers last October, the Bank of England has warned.

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Andrew64 wrote: »

How does this warning from the BoE square with bank shares shooting up and talk of the first signs of recovery?

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4996806/Bank-of-England-warns-tensions-in-banking-system-at-fever-pitch.html

Tensions in the financial system are approaching the fever pitch they reached before the collapse of Lehman Brothers last October, the Bank of England has warned.

Barclays shares up off the back of an unexpected report saying they are doing well for this time of year bearing in mind market conditions etc... blind leading the blind as usual. They cant see the pile up ahead of them.

vivatifosi

Out of interest, how will the class action suit out of the US against RBS and Sir Fred affect the banking system? That must surely cause tensions, especially if pumped in funds then have to be paid out to shareholders, which I'm guessing isn't the desired effect of the bailout.

purch

How does this warning from the BoE square with bank shares shooting up and talk of the first signs of recovery?

Until the interbank lending market gets back to 'normal' (if it ever does) then there can be no long lasting recovery, in Bank shares or the general economy.

It's looking increasingly likely that the Banks will not continue to get off scot free, and there will be more and more investigation into their actions before and during the 'credit crunch'.

The recent demand by the U.S. Congress to know the recipients of money from the bailout of AIG should show to the Bankers that they won't just be able to take the money and carry on as before