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Treasury Paying Millions In Fees For Asset Protection Scheme

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http://www.telegraph.co.uk/finance/finance...ion-scheme.html

The Government has paid bankers, lawyers and accountants £26.5m so far for advice in setting up the state-backed insurance scheme for banks' toxic debt.

Investment banks Citi and Credit Suisse, and asset manager BlackRock were among seven companies paid for advice, according to a Treasury response to a Freedom of Information request by Reuters. Lawyers Slaughter & May and accounting firms Ernst & Young, KPMG and PricewaterhouseCoopers also provided advice.

The Government is setting up the so-called asset protection scheme (APS) for Royal Bank of Scotland and Lloyds Banking Group to put a floor under potential losses on £585bn of their bad assets. Terms were agreed six months ago, but Lloyds is hoping to reduce its participation to avoid the high cost of the scheme.

The Government has made it clear a fee will be charged for the insurance already provided, regardless of negotiations. The Treasury said the cost of setting up the APS will be billed back to RBS and Lloyds, which are 70pc and 43pc owned by the taxpayer respectively.

In July, the Treasury revealed it had paid Credit Suisse £9.6m and Citi £1.9m in the first half of this year for advice related to the APS. For the whole of last year, the Treasury bankers' advisers fees of £7.1m, to Goldman Sachs, Morgan Stanley and Deutsche Bank.

Sharing the wealth, it's just sharing the wealth.

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well, paying the masters of the universe 300K and employing 10 of them starts to cost....simples. then get advice from 10 organisations and 10 more masters, it REALLY costs.

this is how the whole PS purchasing works....you get the green light to tender, and you are minted.

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