The Working Group will consider options for improving the
mortgage-backed securities market, including measures aimed at
broadening the investor base for mortgage-backed securities and
improving the robustness of the market. Its first task will be a
broad-based assessment of the current state of the mortgage finance
The Chancellor said: "The recent and
ongoing disruption in global financial markets has raised complex
issues about the functioning of the mortgage-backed securities
markets. I am delighted to announce that Sir James will chair the
industry Working Group that will consider market-led initiatives to
improve these markets. This work will be an important contribution
to stabilising the cost and supply of UK mortgages".
Sir James Crosby said: "I am very
pleased to be playing a part in this work. These difficulties stem
from problems in the markets, so to be effective any proposals to
deal with them must be market-developed and market-led. Our job in
this group will be to facilitate a discussion between lenders,
investors and the authorities with a view to identifying market-led
solutions that will work".
The Group will present an interim
report to the Chancellor later this summer and a final report at the
time of the 2008 Pre-Budget Report.
April 2008 -
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