Published at 03:59 (GMT) 24 Oct
Guardian: BoE will fire bosses of collapsing banks and force investors to take losses under plans announced on Thursday intended to avoid another taxpayer bailout of the banking system.
Threadneedle Street would conduct any rescue operation over 48 hours – most likely over a weekend – and install a new management team at the failed business. Instead of pumping public money into the collapsed bank, as happened in the GBP45bn bailout of RBS, the losses would fall on shareholders and bondholders.
On FX, some focus on the above, good to watch for any changes in structures of banks and contingency plans. Also on the "too big to fail" debate. Little impact on FX. GBP/USD at 1.6030-33, within 20-25pips of 1.6022 to 1.6038 so far today. Offers at 1.6040-50, with focus still on the post retail sales dip 1-week lows of 1.5995 seen on Thursday. Lowest level since Oct 16 1.5940.
EUR/GBP at 0.7893-95, offers at 0.7900-10, bids at 0.7850-60. Interest to sell on rallies, given ongoing concerns over eurozone growth, more ECB stimulus ahead. While BoE seen less dovish, despite likely later than expected BoE rate hike in 2015. WL
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