Summary
THE threat of full-scale nationalisation is hanging over Britain's major banks. In talks between the Treasury and retail bank officials over the weekend, the government is said to have moved closer to increasing substantially the state's holdings in the major banks unless they agree to full disclosure of their most corrosive investments and loans. Only the banks' commitment to a GBP200 billion state-backed insurance scheme, which would see the Treasury underwrite toxic investments, with the banks being allowed to ring- fence them in special long-term accounts, will avert the threat of nationalisation.
Recognising the tight timetable that exists before the banks publish their annual accounts in a few weeks the prime minister and chancellor are both said to be determined to avoid a repeat of the last-minute deal which marked the GBP500bn bail-out last October.See the full content of this document
Extract
Banks Warned: Own Up or Face Nationalisation
However, given the political sensitivity of having close to GBP1trillion in taxpayers' money tied up in a repeat rescue deal both Gordon Brown and Alistair D...
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