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Banks May Need New Bailout In 2011 - Thinktank

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Unexpected, contained.... :ph34r:

Why the bonus payments and re-hiring?

Banks may need new bailout in 2011 - thinktank

http://www.ft.com/cms/s/0/20ff2f62-cf2a-11df-9be2-00144feab49a.html

LONDON | Mon Oct 4, 2010 12:04am BST

LONDON (Reuters) - Many British banks may need another state bailout next year and their borrowing requirements could hit 25 billion pounds a month, the New Economics Foundation (NEF) thinktank said Monday.

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Unexpected, contained.... :ph34r:

Why the bonus payments and re-hiring?

Banks may need new bailout in 2011 - thinktank

http://www.ft.com/cms/s/0/20ff2f62-cf2a-11df-9be2-00144feab49a.html

LONDON | Mon Oct 4, 2010 12:04am BST

LONDON (Reuters) - Many British banks may need another state bailout next year and their borrowing requirements could hit 25 billion pounds a month, the New Economics Foundation (NEF) thinktank said Monday.

...link goes to

Myth-busting

Migrants are a burden on public services

Despite lurid headlines about foreign benefit scroungers, there is little evidence to support fears that migrants take more money out of the economy than they put in overall.

...has it copied correctly..?

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Unexpected, contained.... :ph34r: (FIXED)

Why the bonus payments and re-hiring?

Banks may need new bailout in 2011 - thinktank

http://uk.reuters.com/article/idUKTRE6922IA20101003

LONDON | Mon Oct 4, 2010 12:04am BST

LONDON (Reuters) - Many British banks may need another state bailout next year and their borrowing requirements could hit 25 billion pounds a month, the New Economics Foundation (NEF) thinktank said Monday.

Edited by OnlyMe

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.....good test for the anti-bail-out elements within the coalition..... :rolleyes:

Are there any left? They all seem to roll over. <_<

More coverage.

http://www.guardian.co.uk/business/2010/oct/04/bailout-banks-likely-further-funding

Banks may ask for more cash to plug £750bn funding gap, says thinktank

New Economics Foundation warns that emergency funding schemes will run out soon and calls for urgent banking reforms

Lloyds bank Lloyds Bank, in which the taxpayer owns a 42% stake, is making some progress – last week it said it had raised £25bn of fresh funds on the markets. Photograph: Andy Rain/EPA

Britain's banks may soon demand a further bailout from the public purse despite £1.2tn already being put at risk to prop up the system, a leading economic thinktank warns today.

Edited by OnlyMe

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WTF is the point of this system continuing. The govt would surely be better off cramming them down with haircuts and write offs for the whole equity structure and float them back into private hands under a renewed debt for equity bond sale.

This is like an open wound the injured person refuses to close.

Riddle me this. Imagine bank A writes a load of garbage to bank B and bank B writes a load of garbage to bank A, e.g. crappy loans, CDS etc in whatever large enough circle jerk to replicate our bullsh*t banking system.

It then blows up because it was all designed to pay out short term and follow the "l'll be gone" business revenue model. The bank (pick one doesn't matter) turns round to the govt/productive society and demands that they help bank A make good their bank credit debts to bank B otherwise they'll all go down having written eachother nigh on quadrillions in bank credit promisary paper.

They have discovered turning lead into gold. They turn bank credit into real money. They wont stop.

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Osborne doesn't expect banks to need more help
.8:03, Monday 4 October 2010
LONDON (
Reuters
) - Chancellor George Osborne said on Monday he was not expecting any bank to need any further government support.
"I am certainly not expecting and I have no indication at all that any British bank needs any further support," he told Sky News, asked about a report by a thinktank, the New Economics Foundation, suggesting banks could ask the government for more help.
"Those decisions were taken and the banking system in Britain is much more stable than for example the banking system in Ireland," Osborne said.

Georgeis quick to deny this story in the FT. It might start a run on the banks and cause the Banksters to lift even more cash out the tills.

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http://uk.finance.yahoo.com/news/uk-on-cusp-of-second-banking-failure-skynews-5809d3acd179.html?x=0

High street banks stand on the verge of another credit crunch and taxpayers may be forced to plug a £25bn-a-month funding gap, an economic think-tank has claimed.

Faced with a huge financial black hole, the New Economics Foundation (NEF) has said the banks could turn again to the Government for support.

According to its report - Where Did Our Money Go? - an estimated £1.2trillion of state cash has already been pumped into the banking system.

However, NEF has described a "shocking" lack of information about how that money has been used and demanded "urgent reform".

The report warns that the industry is on a collision course for a severe funding crisis when current financial lifelines are withdrawn.

In particular, there are fears over the Bank of England's Special Liquidity Scheme - a vital source of money since the credit crunch - which ends in 2012.

The group has urged a range of changes, including splitting retail operations from more risky investment banking and the breaking up of "too big to fail" players.

It comes against a backdrop of incoming regulation - such as the Basel III capital rules - that demand banks put aside more cash to boost their capital strength.

Calling for reform, Tony Greenham, head of the finance and business programme at NEF, said: "We are on the cusp of a second banking failure.

"The public have already paid for the failure of the banks twice - first by bailing them out and then by suffering a programme of drastic cuts to public services to appease the financial markets."

A Treasury spokeswoman claimed the Government had already taken measures to reduce risks posed by the financial sector and is pushing for global standards to help protect taxpayers.

She said: "We have introduced a bank levy designed to address systemic risk.

"We have also established an Independent Commission on Banking, which is considering measures to reduce systemic risk presented by large banks, while promoting competitiveness in the industry."

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To some extent, I welcome this. Either we let some banks go to the wall (which, arguably, should have happened the first time) or, at least, we have a chance to impose some conditions with the money (which, definitely, should have happened the first time).

Of course, there's always option c - give 'em the money and impose no meaningful restrictions again...

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Well this is what I've been telling everyone.

The original bailout should never have been enacted for the simple reason that it will never work anyway. The West is in the grip of a systematic failure and needs to examine the core reasons for that rather than keep papering over the cracks.

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Of course, there's always option c - give 'em the money and impose no meaningful restrictions again...

I think that might be the "light blue touch paper and stand well back" moment...

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They will be politically unable to offer another bailout. As the cuts start to bite, as they will later this year, there will be zero appetite for more shovelling more money into banks.

They may be stupid enough to try it, but I would say that if they do it will be the start of public unrest / tax strikes / etc.

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not just our banks:

.Swiss banks 'must face tougher capital standards'
8:17, Monday 4 October 2010
Swiss government-appointed experts said Monday that tougher capital standards should be imposed on Switzerland's two biggest banks, UBS (Virt-X: UBSN.VX - news) and Credit Suisse, that far exceed new international "Basel III" proposals.
The commission of financial experts recommended in a report that the capital ratio for the two banks should amount to 19 percent of risk-weighted assets, including 10 percent in high- quality common equity .
"Compared with the minimum requirements of Basel III, the Commission's proposals require the big banks to hold around 40 percent more common equity and around 80 percent more total capital," the commission said in a statement.
The Swiss central bank and the regulator, the Financial Markets Authority (FINMA) welcomed the proposals and said they should be implemented swiftly.
"The Swiss National Bank and FINMA regard it as absolutely essential that the committee?s proposals are implemented in their entirety," they said in a statement.
Credit Suisse and UBS are regarded as "too big too fail" because of their size and influence on the Swiss economy.
UBS, then the biggest of the two, had to be shored up during the financial crisis by a multibillion dollar state rescue package.

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To some extent, I welcome this. Either we let some banks go to the wall (which, arguably, should have happened the first time) or, at least, we have a chance to impose some conditions with the money (which, definitely, should have happened the first time).

Of course, there's always option c - give 'em the money and impose no meaningful restrictions again...

Rock and a hard place, more bailout money and the populace won't be happy, if they let them go to the wall people will question why they got bailed out in the first place again unhappy populace.

Clearly free money isn't working.

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I thought our banks were raking it in with high interest rates to borrowers and low rates to savers.

I understand they have to pay back the SLS money but that's a one-off thing.

Edited by exiges

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Rock and a hard place, more bailout money and the populace won't be happy, if they let them go to the wall people will question why they got bailed out in the first place again unhappy populace.

Clearly free money isn't working.

I was starting to get bored with things and then this story broke. Might be good for some action this Autumn.

I think the Euro is about to tank again. Looking shaky on FOREX this fine morn.

Massive flight to safety II is brewing. :D

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Pardon me, but which banks are actually solvent?

has lending them cash done anything about their debts?

have they paid them down?

no, theyve used it to buy more assets..stocks, bonds and more lending.

Post Office advertising really good cheap mortgages on the telly yesterday I saw....from a Bank that is bust!!

we have the same number of banks, who went BUST in 2007, competing for LESS business and NONE are going to the wall!....how is this even possible???

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Rock and a hard place, more bailout money and the populace won't be happy, if they let them go to the wall people will question why they got bailed out in the first place again unhappy populace.

Clearly free money isn't working.

Let them go to the wall and blame Brown?

I was surprised when the Swiss Franc rallied so strongly as when the mess all kicked off the Swiss banks, which effectively are the Swiss economy, looked like the Icelandic ones re the amount of debt they were allegedly in hock for?

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Clearly free money isn't working.

Free money never works, never has done and never will. The most basic economic concept off all seems to be the one that eludes so called experts and policy makers.

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I was starting to get bored with things and then this story broke. Might be good for some action this Autumn.

I think the Euro is about to tank again. Looking shaky on FOREX this fine morn.

Massive flight to safety II is brewing. :D

Is it biccy time?

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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