Bank gov. says Britain entering recession

LONDON, Oct. 22 (UPI) -- Bank of England Gov. Mervyn King said the British economy was headed toward a recession, prompting a quick fall of the pound against the U.S. dollar.

King said, "It now seems likely that the economy is entering a recession," The Times of London reported. The pound slid to $1.6331 against the dollar, a five-year low, The Times said.

The euro also fell, dropping to $1.2743 against the dollar, which has gained strength on the U.S. government's consideration of an economic stimulus package.

U.S. Federal Reserve Chairman Ben Bernanke has endorsed the concept of a new spending package to pump capital into the economy. On Tuesday, the Fed opened a new facility to provide $540 billion in liquidity for money market mutual funds.