Government To Loan Banks £50Billion

Originally Posted by BBC News

A plan to loan billions of pounds to British banks is needed to stop the UK's financial crisis worsening, the chancellor has said.

Alistair Darling added that without the Bank of England's intervention there was "every chance" the situation would get worse.

Mr Darling confirmed a scheme to lend banks money to help them operate during the credit squeeze.

But he insisted that the loans would have to be paid back.

The BBC understands that the Bank will announce the plans to swap about £50bn worth of government bonds for British banks' mortgages.

Business editor Robert Peston said it would be the biggest ever special initiative by the British monetary authorities to supply liquidity to the British banking system.

This is absolutely disgusting, these bank's post record profit's each and every year, are making billion's of pound's, are ripping consumer's off left, right and centre, and we, the public, have to bail them out when the going get's tough...

How about they start lending responsibly, and start ploughing some of the tens of billions of pounds profit they have been making back into their operations when times get hard...

I like the Lib Dems stance on this latest Labour farce:

Quote

But Liberal Democrat Treasury spokesman Vince Cable expressed concern that the government was offering the banks too good a deal.

"We cannot have a situation where the banks are able to privatise their profits and nationalise their losses," he said.

"Since the mortgages from the banks are of inferior quality and higher risk than the government bonds which they are replacing, the implication must be that taxpayers are shouldering the risks and losses of the banks.

"We need urgent reassurances from the Government that the exchange is taking place on a discounted basis so that the banks and not taxpayers carry any losses."

How anyone can even consider still voting Labour is beyond me... they are killing this country and robbing the taxpayer in everything they do!!!

BBC News Report

I also refer people to evidence of the banks still making record profits:

Originally Posted by BBC News

HSBC, the UK's largest bank, has said it has made a $17.2bn (£8.7bn) loss after the decline in the US housing market hit the value of its loans.

But its annual profits still rose 10% to $24.2bn (£12.2bn), up from $22.08bn the year before.

BBC News Report

Originally Posted by MattLFC

<...>
How anyone can even consider still voting Labour is beyond me... they are killing this country and robbing the taxpayer in everything they do!!!

It will be interesting to see how much of a resurgence the Lib Dems have at the next election from people who can't bear to vote Tory under any circumstances. From what I read this side of the pond, it's now at least arguable that the Lib Dems are the left wing party in the UK.

Brian.

Brian; you're right. The difference between Labour & Conservative is becoming more & more like the difference between Republican & Democrat

I think the problem with the Tories is actually Labour becoming more and more alike them every day. This is the reason people are now stuck for a way to vote.

Ive always voted Tory, mainly because my father has (although my mums side were always very much Labour after Angela Eagle got in locally).

I think the Lib Dems have some great ideas but their lack of real following within the UK put's me off making a vote for them; I want a vote that counts, not just one that takes away from the inevitable Tory or Labour win.

I do feel that people should vote Conservative over Labour at the next GE, but only for one reason - you know what you will get with the Tories (and maybe this new gang wont have so much sleaze as the tories of old). Labour seem to be moving further and further away from their traditional core values and following a Tory scheme, so whats the point in voting for an opposing party, if you can't actually be sure what they are going offer, or if they are actually going to be any different from the other party.

Id rather know what im letting myself in for then wait and risk it.

I totally agree. For me Labour have had their day - I never could, and still can't, warm to Gordon Brown. The latest is that he needs the assistance of Tony Blair to help him to get back on track. Also looks like John Prescot was never, well, erm , let's just say his number one fan either! Mmmm too many mistakes in too short a time!

The Government can help the housing problem in an instant, without throwing money at lenders by
a) reducing stamp duty thresholds and
b) overriding the MPC and lowering interest rates.

This would help first time buyers and reduce the number of repossessions.