David Cameron kept pushing Bank to risk £20bn to help G

David Cameron kept pushing Bank to risk £20bn to help Greensill


On 16 March 2020, after introductions by Cameron, Lex Greensill sent Cunliffe a letter asking for government backing.
Greensill pitched the idea to the Bank of England as an opportunity to get money directly to small business borrowers. With a government-backed fund to support it, Greensill would also be free to issue more loans.
“In current markets, investors are unsettled and seeking redemptions. It is critical to stabilise the supply chain finance investor base at a matter of urgency,” Greensill said in the letter addressed to Cunliffe.
“In our judgment, the initial size of the facility needs to be in the order of £10-20bn if it is to provide the necessary level of confidence to the capital markets that will ensure effectiveness in this extraordinary time,” Greensill added.

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