Truemors
is reporting from
Member
NP Rank:
NP Rank:
BRITISH BANKS BAILOUT: PM Gordon Brown to Address Nation 7:00am Tomorrow (Weds)
Share:
by Christina 123 | October 7, 2008 at 02:27 pm
200 views | 10 Recommendations | 3 comments
Videos
Cartoon: Gordon Brown's 'What I did in my Summer Holidays' - The Politics Show - BBC One
sourced by Christina 123
Prime Minister Gordon Brown is to announce a £50billion bailout package US-style to help floundering British Banks as shares fell disastrously today. HBOS shares were down a whopping 42% after such a good rally last week.
The tax payer is to bear the brunt of the bailout. Disaster Minister Alastair Darling has called the nationalisation of ailing banks "recapitalisation", supporting fears that the world economy is propped up by massive black holes.
Britain’s taxpayers will tomorrow be committed to spending more than £50 billion to bail out the high-street banks in a bid to avert a cataclysmic failure of confidence, The Times learnt tonight.
Alistair Darling will tell the City in an early morning announcement that the sum is available for “investment” in leading banks that have demanded help from the Government.
The drastic rescue move is designed to help restore stability and kickstart the paralysed credit markets by encouraging banks to lend to one another again.
But Gordon Brown and Alistair Darling were forced to bring it forward earlier than they intended because of fears that a second day of hammering for bank shares had made leading institutions vulnerable.
Related Links MultimediaHBOS shares slumped by 42 per cent today, Royal Bank of Scotland was down 39 per cent and Lloyds TSB dived 13 per cent in another torrid day for the banks.
The taxpayer will take a stake in banks that seek assistance through the purchase of preference shares, which the Chancellor will say could mean ordinary people making a profit once the crisis is over.
Holders of preference shares are first in line for payout of dividends but they do not carry voting rights. The bail-out is expected to be structured so that the Government also receives rights to ordinary bank shares at low prices, holding out the prospect of profits if and when banks recover.
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 (3)
at 15:02 on October 7th, 2008
Looks like a early start for tomorrow than: what possiblities do you think
£50 billion for the banks - no where near enough maybe £100-200+ is needed (if the states gets £450k why do we think £50 is enough)- and/or
RBS now owned by the tax payer - super, 3 banks to go - and/or
1% cut in rates - super, i cant take advantage as i am on a fixed rate and like the rest of the uk i cant remortgage.- and/or
£100k bank guarantee on savings - so the rich need 10+ accounts and share the wealth between banks.
hhhhhmmmmmm imagine if house prices drop 20% from here - the uk could become a house of cards
maybe we should join the euro - as there is no problems there according to the ECB
smile - at least that is free
at 18:08 on October 7th, 2008
Christina 123, I like this story. It's good stuff.
at 13:33 on October 8th, 2008
Thanks, Jon, zichi and Damian! Well we now know that UK taxpayers are to be hammered with an eye watering £400bn bail-out of all the high street banks, at £2000 per head. This is the stark choice we are faced with - or so they say - or face utter ruin far worse than this. Globally, we have had interest rates cuts, let's see if it does the trick!