Crosby to trouble-shoot for Treasury

The Treasury will announce today that Sir James Crosby, the former chief executive of HBOS, will chair a group examining how to boost confidence and attract more investors to the market for mortgage-backed securities. The market for bonds backed by mortgage cash flows has seized up during the credit crunch and the Treasury wants to find ways to ensure its long-term viability. Sir James, who left Britain's biggest mortgage lender HBOS in July 2006, will recruit other members of the mortgage and investment industries to join the group, which is expected to produce an interim report by the summer.