Government To Loan Banks £50Billion - 20th Apr 2008 6:47pm
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.
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."
"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