The fine distinction between lender of last resort and a bail-out

By David ProsserPublished: 15 September 2007At first sight, the Bank of England's decision to provide emergency funding to Northern Rock directly contradicted its Governor's warning on Wednesday that he would not authorise bail-outs of banks caught up in the sub-prime crisis. Yesterday, the Bank was at pains to explain there had been no change of policy.On Wednesday, the Bank said it would not