British Bank Bail Out at Tax Payers Expense?!
Unless you spent your weekend under a rock, you would have heard about our Government’s rescue plan to our banks.
As I sat down this afternoon to disect the issue, I first read through my bookmarks and came across this little doozy from the Money Hospital. They do a great job of breaking down the plan and explaining, in laymen’s terms, what it means UK taxpayers. Here are a few of the highlights but I recommend giving them a read as well:
- Banks can borrow from the Government to increase their capital by £25 billion
- £200 billion will be available in short term loans from Bank of England
- Banks will have to sign up to an FSA agreement on executive pay and dividends
- Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB, and Nationwide will take part in the equity raising
- Banks will pay the price of; no more big bonuses, no dividends to shareholders, and a promise to keep lending money to small businesses and potential homeowners.
I know, all this funny money talk (Billions?) and promises by banks? It all sounds a bit sketchy…
What do you think?
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