The U.K.'s financial services regulator repeatedly urged the Bank of England to intervene in money markets in order to stave of a crisis in confidence surrounding U.K. mortgage lenders, according to a published report Wednesday. The Financial Services Authority called on the central bank to act in the weeks before Northern Rock found itself in need of an emergency loan, according to a report in the Financial Times. The regulator said the central bank should accept a wider range of collateral, such as mortgage-backed securities, against loans it made to banks. The European Central Bank and the Federal Reserve both accept these types of securities as collateral. But the Bank of England reportedly argued that relaxing its standards would create a so-called "moral hazard" because bailing out banks without them paying any penalty would encourage the banks to take similar risks in the future. http://www.marketwatch.com/news/sto...97-4CFF-9EA9-B40C35311D4F}&dist=TQP_Mod_mktwN Seems we still have some "ARISTOCRATS" within BOE, or ?