Tuesday, April 22, 2008
Bailout means banks will not come clean
The Government's deference and indulgence to the banks is extraordinary. ... bank executives fear asking their shareholders for money – rights issues – since they risk being sacked. It is easier to rattle a begging bowl in Whitehall and ask the Government for the money. They have. If there is to be any departure from the traditional terms on which the Bank of England lends to the banks there must also be tough, binding, explicit conditions not vague assurances.