Friday, Jan 16, 2009
How much are these bad debts worth? No one knows.
Telegraph: Why is the Government preparing to help the banks again?
Even though ministers have injected £37 billion of public money into the banks' balance sheets, that was simply not enough to cover the huge losses that the banks' are facing from loans they made, based on the value of properties that have since tumbled in price, to people and companies that are now at risk of defaulting. Such losses could cause the complete collapse of major banks, bringing chaos to the financial system and further squeezing the wider economy.
Posted by gardeniadotnet @ 12:19 AM (448 views) Add Comment
4 Comments
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1. it_is_going_with_a_bang said...
Why? To save it sorry ar5e.
Or should I say Try To.
2. stillthinking said...
Because otherwise everything is f*cked.
3. Rimmer said...
I dont really see this house values going down affecting banks thing, you borrow £200000 you Owe £2000000 and you will pay back over the years at least £200000 ( obviously less interest as Gordon has seen to that for the banks ) - its the loan not the house value that matters.
4. plato said...
It's something to do with ownership..............The banks own them.