Among topics for discussion was the implementation of the recommendations of the Crosby Report which was published last November.
One of the main recommendations of the Report was that the Government should guarantee bank bonds that used home loans as collateral.
The main debate is likely to concern the pricing of these guarantees, as if they are too expensive then the banks will not want to use them, and if they are too cheap then the banks will make too much money, which will be polically unacceptable. One of the conditions of the guarantees would be that funds should be used to provide loans to homebuyers and not for remortgaging.
The use of bonds to fund lending reached its peak in 2007, while there is no desire to return lending to 2007 levels, it is the return of this securitisation that will get the housing market moving again.
The urgency of the situation appears to be recognised by all parties, as house prices fall and the economy deteriorates daily, and it is hoped measures will be in place by the spring when the housing market traditionally kicks into gear.
It is believed that loan guarantees for small business were also up for discussion.
