The other important wholesale market, for short and medium term bank debt, is also a long way from functioning normally. And one historically important source of wholesale funds for British banks, the US money market mutual funds, has become much smaller, due to regulatory changes in … Well that would cost them an extra £5bn a year, according to the Bank of England, based on the current structure of interest rates - whose cost would be passed on to borrowers (yikes)
Read more:
BBC - Peston's Picks: The acute vulnerability of the mortgage market