There have been manyliteraturesof the relativemerits of selling government bonds using a uniform-priceauction rather than the traditional discriminatory-priceauction.
For these institutions, selling to the government, even at a price above distressed levels, could deplete their capital as they crystallise their losses.
Mr Bourne's forecast of a speedy profit, in an interview with the Financial Times newspaper, attracted renewed accusations that the government was selling off the beleaguered attraction at a giveaway price.