U.S.: Mortgage-Backed Securities and the Global Credit Crisis

Despite a March 22 Financial Times report to the contrary, both the U.S. Federal Reserve Board and the Bank of England have denied they are considering bulk purchases of mortgage-backed securities to ease the global credit crisis. The report and subsequent denials come at a time of growing concern over the availability of credit. Ultimately, the challenge for central bankers is as much about getting the wheels of banking to turn again as it is about repairing battered balance sheets.