Authorities are taking firm action to support the financial system

The Bear Stearns rescue, while not signalling the end to the credit crisis, did lay the foundations ...

The Bear Stearns rescue, while not signalling the end to the credit crisis, did lay the foundations for its solution. From that point, it became clear the authorities were prepared to take firm action to support the financial system, although clearly at a price. Similar moves have been undertaken in the UK. The BoE, in tandem with the Government, ensured Northern Rock did not fail, although shareholders are still awaiting the verdict on whether they will receive much for their residual ownership. More important, perhaps, from the wider view of the market has been the establishment of the ...