Truemors
is reporting from
Member
NP Rank:
NP Rank:
BANK CRISIS SHOCK: RBS Taken Over By UK Government
Share:
by Christina 123 | October 12, 2008 at 04:31 pm
1471 views | 53 Recommendations | 11 comments
Videos
HBOS Fights Offer Closes; Barclay's Investors Face Losses On Stock; RBS Raises Share Sales
sourced by Christina 123
It has been revealed that ailing British banking giant,the RBS group, that includes Royal Bank of Scotland and National Westminster Bank plc (Natwest) is to be taken over by the British government in the most sensational move yet to affect the British banking crisis. The banking industry have been awarded a £400bn bail out with £49bn due to be released this morning to High Street banks, by Gordon Brown, Prime Minister, who this weekend has urged world leaders to follow his example.
Oct. 13 (Bloomberg) -- U.K. Prime Minister Gordon Brown's government is set to buy majority stakes in Royal Bank of Scotland Group Plc and HBOS Plc to contain the worst financial crisis since the 1930s, two people familiar with the matter said.
The government will also name representatives to the boards of RBS, Britain's fourth-biggest bank, and HBOS, its largest mortgage lender, and will work closely with the management on issues including executive pay, the people said. They spoke on condition of anonymity because the information is confidential.
The crisis that began in the U.S. and toppled Lehman Brothers Holdings Inc. has spread worldwide and brought RBS, once Britain's second-biggest lender by market value, to the brink of state ownership. Brown acted to prop up the two Edinburgh-based institutions after the biggest one-day drop in the U.K 's benchmark FTSE-100 stock index since 1987.
``The most precious asset of all is confidence and it's something that's been lost in recent weeks,'' Brown told reporters in Paris yesterday. It is ``something that we will restore through coordinated intervention.''
The takeovers begin the implementation of a 50 billion- pound ($85 billion) rescue package announced by Brown last week for British banks struggling under seized-up credit markets and a plunge in home prices. In the past year, the government nationalized lenders Northern Rock Plc and Bradford & Bingley Plc and brokered the sale of HBOS to Lloyds TSB Group Plc
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Crowd Power
Christina 123
LONDON, United Kingdom
Most RecentMost Recommended Comments (11)
at 20:33 on October 12th, 2008
Christina 123, I like this story. It's good stuff.
at 20:53 on October 12th, 2008
Christina 123, I like this story. It's good stuff.
at 21:29 on October 12th, 2008
Christina 123, wow - it's amazing to see this happening to such big banks.
at 22:31 on October 12th, 2008
Christina 123, I like this story. It's good stuff.
at 22:44 on October 12th, 2008
Christina 123, I like this story. It's good stuff.
Not a bit shocked, but will that tax money be a good investment for the tax payer?
at 23:31 on October 12th, 2008
Christina 123, I like this story. A shock, paying the day before the London Fat cat bankers $ 5bn in wealth destruction comission, next day give the criminal bancruptcy fraud Banks a bankguarantee from the "People". If the banks fail, no money for next investment bankers scam, the "People" are in default. In that case the people just don't eat, they die of hunger for the Rich. The same situation like 1930, the poverty reason for the second wolrd war. And some rich watching in the luxury restaurants the disaster of the hungry people. As far as I know Karl Marks lived in the Uk and described the disaster of the families during starting capitalism. Now at the end of Industrial age for Britain, Brown tries to run down Europe, so nobody can see his disaster. Sarkozy , Bling Bling daily flights to London, maybe his singing wife gets a new singers contract from the UK music industry. The little rich lost already 70% on the offshore accounts. They can not even complain, it's black money they lost.
at 23:45 on October 12th, 2008
Christina 123, I like this story. It's good stuff.
at 01:05 on October 13th, 2008
What is remarkable about this is the high level of corruption and deceit of the Labour government. They have not punished any of the bankers, but in fact have injected proportionally more money into the UK banking system, while taking kick-backs for their service. Their bringing down of Iceland was a gross example of their global malevolence.
at 01:55 on October 13th, 2008
Christina 123, I like this story. It's good stuff.
at 01:55 on October 13th, 2008
UPDATE 11:54 GMT: The banks receiving the funding from the government have promised to start lending again, specifically promising to match 2007 loan rates.
Source: citywire.co.uk
at 06:05 on October 13th, 2008
Christina 123, I like this story. It's good stuff.
http://my.nowpublic.com/world/build-confidence-banks-or-government-or-neither
Rev. Jermano