Thursday, February 26, 2009
UK Bank Nationalisation
RBS said it needed to "insure" another £302bn of loans in case they went sour too. Not long ago these loans were deemed to be worth £325bn.
Fawkes calls this a '£325bn bet'. By now there seems to be little choice and it does not look like a bet at this late stage. The Government virtually 'owns' RBS anyway, so it is not 'insurance' in the normal sense of the word.
Fred the Shred should have been jailed rather than paid off big, but would the bankers care, Fred is no banker anyway, just a jumped-up ICI executive. And he was bailed out as a bank executive, but he could still be jailed for his reckless behaviour and maybe a little money could be got back, though Fred's pension is a red herring anyway compared to the fact that RBS is virtually nationalised.
Brown is now in a good position to revamp his PPP scheme, and eventually denationalise RBS. With Brown's public track record of doubt and hesitation, unfortunately this seems unlikely.
Guido also says "If this goes pear shaped Iceland will be nothing in comparison.".
IMO: I agree with that, so Brown should have a go with some strong positive policies, and unlike the Tories, Labor should have plenty. But, remembering Benn, Labor is apt to theorise well enough but not to act sensibly in practice. What UK Labor needs is their own version of Mamata Banerjee. Historically, remember Mahatma Gandhi in Liverpool ? Labor should. But the burnt out UK Labor crooks don't even have an effective Adolf Hitler.
RBS said it needed to "insure" another £302bn of loans in case they went sour too. Not long ago these loans were deemed to be worth £325bn.
Fawkes calls this a '£325bn bet'. By now there seems to be little choice and it does not look like a bet at this late stage. The Government virtually 'owns' RBS anyway, so it is not 'insurance' in the normal sense of the word.
Fred the Shred should have been jailed rather than paid off big, but would the bankers care, Fred is no banker anyway, just a jumped-up ICI executive. And he was bailed out as a bank executive, but he could still be jailed for his reckless behaviour and maybe a little money could be got back, though Fred's pension is a red herring anyway compared to the fact that RBS is virtually nationalised.
Brown is now in a good position to revamp his PPP scheme, and eventually denationalise RBS. With Brown's public track record of doubt and hesitation, unfortunately this seems unlikely.
Guido also says "If this goes pear shaped Iceland will be nothing in comparison.".
IMO: I agree with that, so Brown should have a go with some strong positive policies, and unlike the Tories, Labor should have plenty. But, remembering Benn, Labor is apt to theorise well enough but not to act sensibly in practice. What UK Labor needs is their own version of Mamata Banerjee. Historically, remember Mahatma Gandhi in Liverpool ? Labor should. But the burnt out UK Labor crooks don't even have an effective Adolf Hitler.
# posted by uv : 10:51 PM
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