04 December 2009

Banks get £850 Billion in Bailout

A story about Banks ripping off the public, so not immigrants or swine flu or food scares, but the actual theft of public money by private (now public) banking institutions and individuals. Hail the Mail for backing the common man in this fight against corporate corruption. Or are they criticising the government? Both. Rightly so. Strange one though when the figure rises from the real figure given by the National Audit Office (£131m).


So where does the £850b come from?

Total public sector support – including borrowing guarantees and liquidity support from the Bank, as well as depositor savings protection – runs to £850bn.

So the figure is just guarantees for all the mortgages and savings currently in the saved banks? The prime commodities of the Mail readers maybe? Wonder how much they would have recieved off the Cameron led Investment Bank driven Tory Party?


A fresh row over City bonuses is set to engulf ministers after it emerged last night that 200 executives at Lloyds, the partly state-owned bank, are set to receive one-off payments worth up to 80 per cent of their annual salaries. (The Times)

This is the real theft, there are economic arguments on both sides when it comes to securing the whole banking and credit system within the UK, the government decided to use tax-payers money to do this, and we still have a banking system. But paying the failed individuals who were part of the cause of this problem by seeking high-return high-risk investments is beyond belief.

Despite being 70 per cent government-owned, RBS plans to share about £1.5 billion between its senior staff. The Treasury wants the right to veto such a move. Completing the stand-off, the RBS board is threatening to resign if the Treasury insists on the right to meddle. (The Times)

I say resign now. And that is being very polite.

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