Tuesday, Apr 22, 2008

Bailout means banks will not come clean

independent: Vincent Cable: Don't be fooled... the banks aren't victims of bad luck

The Government's deference and indulgence to the banks is extraordinary.
... bank executives fear asking their shareholders for money – rights issues – since they risk being sacked. It is easier to rattle a begging bowl in Whitehall and ask the Government for the money. They have.
If there is to be any departure from the traditional terms on which the Bank of England lends to the banks there must also be tough, binding, explicit conditions not vague assurances.

Posted by mken @ 08:09 AM (294 views) Add Comment

2 Comments

1. tyrellcorporation said...

A great summing up: "Much of the lending boom has been based on property and the belief that houses are not just our homes but the main source of family wealth: a pension, a bank account and a dwelling rolled into one. The Government's emergency package is at least partly designed to stop house prices finding a more sustainable level: a costly and ultimately fruitless objective."

Tuesday, April 22, 2008 08:33AM Report Comment
 

2. matt_the_hat said...

Hair cut my ar$e, if these guys could sell the securities at face value they would. Why don't poeple in this country realise that something is only worth what someone will pay for it!!

Tuesday, April 22, 2008 09:33AM Report Comment
 

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