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U.k. Government Paid Investment Banks 62% More For Bailout Work In 2009

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http://www.bloomberg.com/apps/news?pid=206...id=aFgummEZxZ7A

July 16 (Bloomberg) -- The U.K. government paid 11.5 million pounds ($19 million) of fees to investment bankers so far this year, 62 percent more than all of 2008, as it hired advisers to help stabilize the country’s financial system.

Credit Suisse Group AG received 9.6 million pounds and Citigroup Inc. got 1.9 million pounds in the first half of 2009, the Treasury said in response to a Freedom of Information Act request filed by Bloomberg News. That compares with 7.1 million pounds paid to Goldman Sachs Group Inc., Morgan Stanley and Deutsche Bank AG in 2008.

The Treasury said it paid for advice on valuing assets held by Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc’s that would be covered by the government’s 585 billion- pound asset protection plan. In all, the U.K. has committed as much as 1.4 trillion pounds to aid the nation’s banking system through the plan, direct investments and loan underwriting.

“Although this is a large figure, it is modest in relation to the scale of the Asset Protection Scheme,†said Oliver Grundy, banking partner at accounting firm Deloitte LLP.

Both Zurich-based Credit Suisse, Switzerland’s biggest bank by market value, and New York-based Citigroup were paid for the “deployment of government financial sector support packages including the due diligence of bank assets,†the Treasury said. The fees are still subject to audit and some may be recoverable from the firms rescued, the Treasury said.

Officials at Credit Suisse, Citigroup, Goldman Sachs, Morgan Stanley and Deutsche Bank in London declined to comment.

‘Modest’ Fees

Perella Weinberg Partners LP, a New York-based financial- advisory firm, is getting $9.12 million over two years from the Federal Deposit Insurance Corp. for providing advice on strategies and transactions related to failing banks and complex financial instruments.

The U.K. government paid Morgan Stanley 1.5 million pounds for advice on the sale of Bradford & Bingley Plc’s assets last year, while Deutsche Bank received 49,500 pounds for “staff secondment†last year, the Treasury said.

Credit Suisse, Citigroup, Morgan Stanley and Deutsche Bank were selected after a “competitive process†that included a review of their ability to sell debt and shares as well as their value for money, the Treasury said.

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Edited by VoteWithYourFeet

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Guest DissipatedYouthIsValuable
about 2 days work at a guess.

Two WHOLE days? What a bunch of losers.

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