THE TELEGRAPH: The credit crisis is far from over and British shareholders are at serious risk of becoming its next victims, the Bank of England has warned.
In an unexpectedly downbeat report on the state of the British financial system, the bank warns that the UK stock market is "particularly vulnerable" to a downturn.
Almost all British workers have money invested in shares – either directly or indirectly through their pensions and life assurance plans – and could lose out if share prices suffer a significant fall.
The bank warns that there is a significant risk of the City and Britain's financial system becoming embroiled in further turmoil as a result of the credit crisis gripping the world's money markets. The "credit crunch", which has already caused a run on Northern Rock bank, is far from over, it says.
And today, retail entrepreneur Sir Philip Green warned that the shockwaves from the crisis will be felt throughout the economy. Investors warned of slide in shares (more) By Edmund Conway
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UK financial system at risk from new shocks, says Bank By Gabriel Rozenberg and Christine Seib
Mark Alexander
