The intervention by the Bank of England in the gilts market prevented mass insolvencies in the pension industry according to Sky’s Ed Conway.
In a tweet he said he was told that the Bank were responding to a “run dynamic” on pension funds – a wholesale equivalent of the run which destroyed Northern Rock.
Conway claimed that had they not intervened there would have been mass insolvencies of pension funds by this afternoon.
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On the @bankofengland intervention:
Am told the BoE were responding to a “run dynamic” on pension funds - a wholesale equivalent of the run which destroyed Northern Rock.
Had they not intervened, there would have been mass insolvencies of pension funds by THIS AFTERNOON.
— Ed Conway (@EdConwaySky) September 28, 2022