sunonmars Posted December 4, 2009 Share Posted December 4, 2009 (edited) Talk about putting us all in hoc. Bankers got their bonus, all £107 million of it, from the Govt for advice to regulate them. http://www.independent.co.uk/news/uk/politics/163850bn-official-cost-of-the-bank-bailout-1833830.html Government support for Britain's banks has reached a staggering £850bn and the eventual cost to taxpayers will not be known for years, the public spending watchdog says today. The National Audit Office (NAO) revealed that £107m will be paid to City advisers called in to work on the rescue because the Treasury was too "stretched" to cope with the sudden financial crisis which broke in the autumn of last year. The commitments include buying £76bn of shares in Royal Bank of Scotland and the Lloyds Banking Group; indemnifying the Bank of England against losses incurred in providing more than £200bn of liquidity support; guaranteeing up to £250bn of wholesale borrowing by banks to strengthen liquidity; providing £40bn of loans and other funding to Bradford & Bingley and the Financial Services Compensation Scheme; and insurance cover of over £280bn for bank assets. In its report, the NAO ruled that the "unprecedented" £850bn of support for the banks was "justified" to head off the potential damage of one or more of them going bust, and preserving people's savings and confidence in the financial system. But the NAO warned that RBS and Lloyds would fall short on their promises to boost lending to business this year – by £25bn and £14bn respectively. It disclosed that Credit Suisse and Deutsche Bank were appointed on retainers of £200,000 a month for a year as an emergency measure because the Treasury needed immediate back-up. Both banks could also be in line for "success fees" – £1.5m for Credit Suisse and £110,000 for each month worked by Deutsche. The NAO questioned the Treasury's decision to allow the top-ups to be paid solely at its own discretion. Credit Suisse also landed a separate £300,000-a-month contract to advise on the Asset Protection Scheme to insure banks against future losses plus further "success fees" of up to £3m. Its total payments could reach £15.4m by next March. Slaughter & May is expected to be paid £32.9m for commercial legal advice and PricewaterhouseCoopers £11.3m for its work on asset protection. ......................read on. Edited December 4, 2009 by sunonmars Quote Link to comment Share on other sites More sharing options...
sunonmars Posted December 4, 2009 Author Share Posted December 4, 2009 notice all the usual suspects in this, PWC, slaughter and May, Credit Suisse, the cheek of it. Quote Link to comment Share on other sites More sharing options...
Three Pint Princess 2 Posted December 4, 2009 Share Posted December 4, 2009 Slaughter and May, Fantastic name for a firm, Quote Link to comment Share on other sites More sharing options...
Wait & See Posted December 4, 2009 Share Posted December 4, 2009 Fantastic name for a firm, Brown should be more worried about Slaughter in May. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted December 4, 2009 Share Posted December 4, 2009 Indemnified the Bank of England against losses incurred in providing over £200 billion of liquidity support. Covered bet for the Bankrupt of England. Where did their money come from, did it even exist or did they just conjure it up out of thin air, if the latter there can be no reallosses to be indemnified. Sort of one way bet the likes of RBS etc al are involved in. No different whatsoever with the taxpayer on the hook. If they make a profit on their deals where does that go? Quote Link to comment Share on other sites More sharing options...
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