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Darling Warns Banks On Loan Rates

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http://news.bbc.co.uk/1/hi/business/8169225.stm

Alistair Darling has warned the UK's banks that he will take action if they are found to be charging small and medium-sized firms too much for loans.

Speaking to the BBC's Andrew Marr Show, the chancellor said he was "extremely concerned" at the allegations.

He said the banks had a duty to restore lending levels, saying the government did not rescue the banking sector "out of some charitable act".

The chancellor said he would speak to each bank about the matter.

"The public will now understand it if they [the banks] don't seem to be doing their part," he said.

"I want banks to rebuild their balance sheets, but at the same time because of the particular circumstances we are in now, we also need them to relend money."

Mr Darling's comments come after a report by financial website Moneyfacts said banks had increased the interest rates they charge for personal mortgages nearly fourfold in recent months, despite the base rate remaining at a record low of 0.5%.

The British Bankers Association has defended the rise in the cost of borrowing, saying banks are facing "substantially" higher costs.

Mr Darling also reiterated that VAT will definitely return to 17.5% from the current 15% level at the end of the year. The rate of VAT was reduced to 15% on 1 December 2008 to help boost retail sales.

Turning his attention to the wider economy, the chancellor said he was sticking to the prediction that the recovery will start "at the turn of the year", with modest growth being seen in 2010.

Official figures showed last week that the UK economy continued to contract between April and June, although at a slower rate than between January and March.

The economy shrunk 0.8% last quarter, compared with a decline of 2.4% from January to March.

Oh come on, Al, you can do better than that - how about some direct price fixing?

Force everyone to BTl by law - that'll sort it.

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Guest The Relaxation Suite
http://news.bbc.co.uk/1/hi/business/8169225.stm

Oh come on, Al, you can do better than that - how about some direct price fixing?

Force everyone to BTl by law - that'll sort it.

Darling et al have worked round the clock for months to keep land prices out of the sensible reach of average workers. He must presume most people are stupid enough to take these loans he demands the banks make. Maybe they are.

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the banks have a fix for this...they dont lend at all.

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The banks aren't listening, they know they are in the shit.

It was interesting to see that the Brown Broadcasting Corporation ran a piece on the news last night.

The banks know where house prices are going and they are lending based on whats coming not on Labour wishes.

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:lol::lol::lol:

What are you going to DO Darling? Part nationalise them?

You know that could work, Brown could put Balls in charge of Minister for Banks and the lending could commence.

If only we could find some excuse to fully nationalise the banks.

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Guest The Relaxation Suite
The banks know where house prices are going and they are lending based on whats coming not on Labour wishes.

This is the bottom line. Houses have a significant further drop to come, and banks don't want to dig themselves any deeper. If I owned a bank I wouldn't start lending until the average house was £90,000. That amount I know most people could easily repay.

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"Alistair Darling has warned the UK's banks that he will take action if they are found to be charging small and medium-sized firms too much for loans."

like the action he was going to take for all the outrageous payoffs and bonuses bankers paid themselves, then found the matter of contracts got in the way.

He's as desparate as a banker trying to sell mortgages to make up the very last CDO.

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There are very few credit worthy enough to lend to left. :lol:

Banks are like the tobacco industry, tend to kill their own clients off.

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Incredible. A Labour government, historically supposedly 'of the people', are quite content, even keen, for the vast majority to be priced out of a basic human need. Something went very wrong.

I wonder who these frauds really represent.

Go Alistair, you are part of the problem. Take Gordon, Mandy, and Ed with you. Maybe as the months go by towards an election, the desperate (face saving) measures will be resisted as the dissonance between the rhetoric and reality, and the prospect of change at the top means that they can be politely ignored.

Perhaps, we are witnessing the end of a political party. The Labour rank and file only have themselves to blame for allowing the coup.

Maybe, a new political force will emerge. The answer though my friend isn't blowing in the wind.

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you know we've got very different attitudes to debt these days when people just accept this stuff from darling and nod in agreement without questioning what low IR's and easy credit leads to.

It's more of the same populist nonsense. the sheeple tut-tut at the recklessness of the likes of northern rock that lead to near disaster, but then whine when the banks become more risk averse and price in risk for those with higher LTV's to prevent a repeat.

i'm starting to feel sorry for them. not the part-nationalised ones ofcourse, they are still the biggest c*** in the sector. more so now that they have govt. lending targets to meet.

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It's more of the same populist nonsense.

And evidence of utter incompetence. What action can he take?! He's made a very public threat he simply cannot follow through on. If he withdraws taxpayer support for the banks then the systemic failure that support was meant to avert is going to happen again. If he tries to legislate to force banks to lend a certain proportion of their income/reserves etc. etc., they'll just relocate outside his jurisdiction.

The fact that this is glaringly obvious to some nobody writing on a blog site but not to the Chancellor of the Exchequer is truly scary. Unlike Brown, Balls, Mandleson etc., I don't think Darling is malicious (in the sense that he'll bring the whole country down like Brünnhilde's funeral pyre to remain in office for a few months more, which Brown et al certainly are prepared to do), but the extent of his incompetence is staggering. And as for him sticking to his guns over growth predictions...

The other scary thing is that we've got another 9-10 months of this to get through...

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Perhaps, we are witnessing the end of a political party. The Labour rank and file only have themselves to blame for allowing the coup.

Maybe, a new political force will emerge. The answer though my friend isn't blowing in the wind.

A century (near as dammit) from when the liberals self-destructed.

We can see two significant rising political forces: the greens, and the xenophobes. But for either or both of them (or anyone else, like the modern libdems) simply to become another major party would be a lost opportunity. If we can kill off the whole Westminster Old Boys Club and all its corrupt parties, then maybe some good can come of this.

[edit to add] Sorry, that's just England I'm talking about. Labour's demise may not reduce the other countries of the UK to effectively one-party states.

Edited by porca misèria

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"Alistair Darling has warned the UK's banks that he will take action if they are found to be charging small and medium-sized firms too much for loans."

like the action he was going to take for all the outrageous payoffs and bonuses bankers paid themselves, then found the matter of contracts got in the way.

He can warns the banks all day long, but hes just a fooking no-body, the elite (the big boys) tell the banks what they can and can not do, because they own the banks and its all their money now :P and to addd insult to injury hes just an accountant by trade, you would of thought to do his job, he should hold a degree in Economics ;)

Edited by spark1

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Guest happy?
You know that could work, Brown could put Balls in charge of Minister for Banks and the lending could commence.

If only we could find some excuse to fully nationalise the banks.

Howabout they're crap at banking?

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Nationalize the banks, no thanks.

The government won't do it they still need the excuse that it is the bankers fault, this they have retained this lie by leaving the bankers in charge but by owning a stake.

If the government fully nationalized the banks, all of the population would very quickly work out that they would be paying tax which they would then be charged interest on to borrow back as a mortgage. Its not much of a jump from there for the tax paying public to ask why you can't cut out the middleman and keep your own money.

All the country needs from a bank is a way to pay the bills and receive wages, everything else the banks do is fluff.

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I'm surprised the BBC isn't doing a reality tv show "how to get into debt and be a good citizen"

Er, haven't you seen any daytime TV for the last couple of years? ;)

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He can warns the banks all day long, but hes just a fooking no-body, the elite (the big boys) tell the banks what they can and can not do, because they own the banks and its all their money now :P and to addd insult to injury hes just an accountant by trade, you would of thought to do his job, he should hold a degree in Economics ;)

I find it a bit cringe-inducing to see Darling lecturing the banks - all they've done so far is politely acknowledge his comments and then proceed to completely ignore them. He should have thought to add a few conditions back when he was handing the banks all our loot!

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Er, haven't you seen any daytime TV for the last couple of years? ;)

LOL they only have houses and antiques. There's all that electronic modern shi*e people seem to be so fond of. They could have people who have to furnish a full house without spending less than £50,000 and without having anything second hand.

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When Darling meets the bankers tomorrow he is going for his next set of orders from them. He won't be giving any out.

When will these politicians realise who is in charge?

Osborne was put in his place by the real bosses last week when they made him shut up about breaking the big banks up. They told him he could say they would just increase capital instead.

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Oh come on, Al, you can do better than that - how about some direct price fixing? ...

Unfortunately, my petition on the Government closed with only 209 signatures. This article only talks about business lending but you can imagine the 'behind the scenes' talks about mortgage lending. The Government must have a 'solution' in mind, it's about time they come clean a let us know their plans.

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