friday wannabes, page-18

a couple of articles - credit problems continue.

http://www.ft.com/cms/s/0/c6de12c8-6258-11dc-bdf6-0000779fd2ac.html

Bank of England to bail out Northern Rock
By Peter Thal Larsen and Chris Giles

Published: September 14 2007 01:27 | Last updated: September 14 2007 01:27

The Bank of England will on Friday throw a lifeline to Northern Rock by providing emergency funding to the beleaguered mortgage lender that has fallen victim to the liquidity squeeze in the banking sector.

In an unprecedented move, the Bank, working with the Financial Services Authority and the Treasury, will step in to bail out Northern Rock by providing it with a short-term credit line that will allow it to carry on operating.

The rescue, which has been approved by the Chancellor of the Exchequer, is the most dramatic illustration to date of how the British banking sector is being hit by the wave of turmoil that has paralysed the money markets.



http://www.bloomberg.com/apps/news?pid=20601087&sid=aW9AkbU3n3Fc&refer=home

Sept. 14 (Bloomberg) -- The Australian and New Zealand dollars dropped after the British Broadcasting Corp. reported a U.K. home lender won emergency funding, reigniting credit concerns and sapping the appeal of riskier investments.

The two currencies are favorites for the carry trade, where investors borrow cheaply in yen to put their money in countries offering higher yields. Northern Rock Plc would receive emergency financial support from the Bank of England, BBC reported on its Web site. A BOE spokesman declined to comment when contacted by Bloomberg News.