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gruffydd

British Banks Getting Billions In Hidden Subsidies

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NEF said a "conservative estimate" put this subsidy at £30bn a year.

This is considerably less than the £100bn the Bank of England estimated the value of tacit government support for the the UK's four biggest banks - Royal Bank of Scotland (RBS), HSBC, Lloyds Banking Group and Barclays - was worth in 2009.

And the Bank of England is right. You look at the market cost of insuring debts and the cost should be 2% or more of UK banks' balance sheets. The UK taxpayer now provides this insurance for free. UK banks use to self insure via sound lending. Now they don't. British bankers use to pay themselves normal salaries. Now they shower themselves with insane bonuses. Compute...

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Listening sometime ago to QT, IIRC, and a gentleman on the panel said that you cannot let the banks run rampant without regulation as there is no such thing as "ethics" in that world. You cannot expect a dog to eat a steak one little bite at a time any more than you can expect a bankster to refrain from helping himself voracioulsy to the till.

Regulation is key.

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Did this bonus culture start with Thatcher's Big Bang? It's totally ludicrous!

I enjoyed the "City" link + LUD-icrous! Snort.

bonus, -a, -um, the Latin word for "good" B)

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The gap between rich and poor has been growing for some years now. But now the rich institutions seem to be positively hoovering up money. In the past the general wisdom was that the existence of a handful of very rich people makes no difference to the financial status of the general public.

But is that different now? Could we be into a situation where the immense wealth of some institutions (e.g. Barclays) is actually making ordinary people poorer?

Edited by Hyperduck Quack Quack

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The gap between rich and poor has been growing for some years now. But now the rich institutions seem to be positively hoovering up money. In the past the general wisdom was that the existence of a handful of very rich people makes no difference to the financial status of the general public.

But is that different now? Could we be into a situation where the immense wealth of some institutions (e.g. Barclays) is actually making ordinary people poorer?

Whilst privately owned banks print our debt money and help fund our government not a lot will change, I guess.

An MP (Carswell? see video positivemoney) has raised a question in Parliament etc.

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  • 312 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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