Said is said!

From today's FT letters page:

Sir, You report that the government is considering an extension of the scheme whereby the Bank of England swaps mortgage-backed securities for gilts (“Darling looks at new mortgage plan”, July 28). Treasury aides are quoted as saying that “the risk would remain with lenders, not taxpayers”.

If there were no transfer of risk from private lenders, there would be no need for the scheme as the mortgage-backed securities would be marketable without the Bank's help.

John Whittaker
Economics Department
Lancaster University

Yes, it's that John Whittaker.