Monday, Apr 21, 2008
The truth behind the trade off?
The Times Online: Mervyn King predicts more banks will raise capital
Mervyn King, the Governor of the Bank of England, said today that more UK banks would follow Royal Bank of Scotland (RBS) in raising fresh equity as he unveiled details of his plan to inject £50 billion of liquidity into the paralysed banking system.
Mr King hailed the new bonds-for-mortgages scheme as the best way of improving liquidity in the banking system and restoring confidence and insisted that it was not a bailout.
He said: "This is not a bailout for banks. The objective is not to protect the banks. It is to protect the public from the banks."
Yeh - right!
Posted by rental john @ 06:44 PM (266 views) Add Comment
1 Comment
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1. uncle tom said...
Our Merv said:
"This is not a bailout for banks. The objective is not to protect the banks. It is to protect the public from the banks."
Read that quote several times over before you go to bed. Trust me, it will be repeated in the future many times over - either as an endorsement of his wisdom as governor - or to bite him for going back on his word...
- We shall see!