Bank of England discusses latest situation

Bank of England Governor Mervyn King held a meeting with Prime Minister Gordon Brown and Chancellor Alistair Darling yesterday morning to discuss the economy and the financial situation, Mr Brown's office said. "We're obviously keeping in close touch.

Bank of England Governor Mervyn King held a meeting with Prime Minister Gordon Brown and Chancellor Alistair Darling yesterday morning to discuss the economy and the financial situation, Mr Brown's office said.

"We're obviously keeping in close touch. There are meetings between the governor of the Bank of England and the regulator, the Financial Services Authority, as well," said Treasury minister Yvette Cooper.

"That's been the case continually and will continue to be the case. We obviously need to monitor events very closely. We're disappointed really with the events in the US, the fact that they didn't get a deal," Mr Cooper told Sky News.

US lawmakers rejected a $700 billion bailout plan for the financial industry there on Monday, sparking the largest ever point decline on Wall Street.

The government has nationalised two banks this year hit by the credit crunch and Mr Brown has said repeatedly the government would do whatever it takes to maintain financial stability.

A spokesman for Mr Brown's office said: "They meet regularly and discuss the financial situation and the economy... obviously, they will discuss the latest situation".

A Bank spokesman said the meeting was "a long-standing breakfast engagement."

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