Sunday, Nov 16, 2008
Another government wheeze that needs deciphering
Times: Treasury may sell shares to City to cut taxpayers’ bank bailout bill
The Treasury is apparently considering dangling the lure of lucrative shares in the banks to pension funds and other City investors to reduce the cost to taxpayers of its bailout plan. The preference shares pay 12 per cent a year and the idea is to allow City fund managers to buy some in the hope that they will be encouraged to purchase further ordinary shares in the three stricken banks.
Posted by enuii @ 10:50 PM (456 views) Add Comment
5 Comments
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1. paul said...
I can't see any problem with this - if they are able to sell them, on the basis that - like an overstretched buy to let landlord - they can't afford to hold onto the assets until they are actually worth something.
2. jonb said...
If city investors were prepared to buy these, we wouldn't have needed a bail out plan in the first place.
They were prepared to buy Barclays shares, so that's why it didn't need to participate.
3. Maihem said...
@jonb, Ah, but the government will sell these ones /way/ below cost.
4. stillthinking said...
I read somewhere that the bail-out must be recognised as part of the National Debt though I can't remember when. New Labour must be desperate to get it off the books otherwise their horrific finances will be even more obvious than they are at the moment. They won't be able to peddle the low debt line to the sheeple.
5. Fjcruiser said...
Looks like the road for GB to propose nationalising the private pension funds like Argentina did a few weeks ago.