It’s a sad state of affairs that our troubled UK lenders would prefer to go to the European Central Bank for funding and not the Bank of England.

The report in the Financial Times yesterday stated that if UK mortgage lenders did accept the bank of england’s offer of funding, then it would be the end of the institutions future and that they believe that reputationally they would be seen as another Northern Rock. Although the access to funding could be kept quiet, the institutions do not believe that it would remain confidential. All trust appears to have gone.

However the European Central Bank seem to be different. They appear to be adopting a common-sense approach to the credit crisis and are providing substantive liquidity for the good of the worldwide economy, and seemingly doing so confidentially.

It appears to trumpo that the Bank of England and particularly Gordon Brown’s govt want to punish Mr and Mrs UK, and the UK lenders for having dared lend them the money that the govt’s regulator so actively encouraged.

It’s terrible that we can rely on the US and the european central bank to keep the UK economy going, while our incompetent govt and regulator keep their head well and truly burried in the sand.

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