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Mail: Fury As City Minister Lord Myners Describes £130bn Sunk Into Banks As ' Nice Little Nest-egg'.

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'Fury as city minister Lord Myners describes £130bn sunk into banks as 'nice little nest-egg':

http://www.dailymail.co.uk/news/article-12...e-nest-egg.html

The multibillion-pound banking bailout is a "nice little nest-egg" for the British taxpayer, City minister Lord Myners insisted today.

The peer said he was "very confident" that the Government would end up making a profit on the spending, and it would take "much less" than a decade.

Speaking on Sky News's Sunday Live programme, Lord Myners said: "A lot of capital has been put into the banks but that is an investment and that investment will prove to be very productive in due course.

"I am very confident that over time we will achieve a surplus on the investment we have made, and make a profit."

He added: "(It is) a nice little nest egg for the British taxpayer."

Asked how long it would take for the taxpayer to get into the black, the minister replied: "We are already making a profit in respect of our investment in Royal Bank of Scotland (RBS) so we will see.

"It will take time and we do not want to rush."

Pressed on whether that meant a decade, he insisted: "Much less than that."

The Government is estimated to have pumped some £60 billion into Royal Bank of Scotland and Lloyds Banking Group, through capital injections and the insurance scheme for toxic debts.

Earlier this year the IMF predicted that the total bill for the bailout would be more than £130 billion.

Shadow chief Treasury secretary Philip Hammond said: "Hopefully we are beginning to see the end of the recession, but nobody should imagine that we are out of the woods yet; and Lord Myners' comments this morning smack of a dangerous complacency creeping into Government thinking.

"Clearly it suits Labour as we move towards the General Election to try to put the best possible gloss on the potential cost to the taxpayer of billions of pounds of taxpayers' money spent saving the banks."

Edited by CrashConnoisseur

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Is this gain he talks about adjusted for the inevitable RAMPANT inflation?

Yes, he is talking ******.

The banks don't create wealth. If somehow this investment is paid off, it will be because the BoE has given more cheap loans to the banks who then use them to inflate asset prices.

This is nothing to do with the skill of the banks, its just the BoE pumping up banking assets.

Instead of bailing out the banks, they could have given every UK Citizen £25k.

Of course that would have just inflated the real economy and made the bankers relatively poorer when contrasted with the real economy. Its all about who gets first dabs on the money flowing from the Bank of England.

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