Tuesday, Nov 24, 2009

Bank of England tells of secret £62bn loan to save RBS and HBOS

Who knew about this?: The Telegraph

In a shock announcement, the Bank disclosed that it had been forced to use its lender of last resort facility last October to "buy time" for RBS and HBOS, which were "effectively... bust". It managed to keep the loans - the equivalent of almost £3,000 for every household in the UK - a complete secret to all but a handful in the City for well over a year.

Posted by devo @ 10:08 PM (1820 views)
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10 Comments

1. devo said...

Did Alistair Darling know?

Did George Osborne know?

Did Vince Cable know?

Who else knew?

What else aren't we being told?

So many questions; so few answers.

Tuesday, November 24, 2009 10:15PM Report Comment
 

2. tenyearstogetmymoneyback said...

Labour MP from the Treasury Select Committee just said on Newsnight that he didn't know !

Tuesday, November 24, 2009 10:52PM Report Comment
 

3. devo said...

The remit of the Treasury Committee, as determined by the House of Commons, is to examine the expenditure, administration and policy of ... Bank of England.

The Chairman of the Committee is Mr John McFall MP. Did he know about this £62 billion loan?

Tuesday, November 24, 2009 11:01PM Report Comment
 

4. devo said...

Mervyn King's admission of the secret loan seemed to be offered voluntarily (in the admittedly short clip I saw on Sky News).

Why would he choose to divulge this information now? Surely a secret kept for over a year could be maintained for longer?

Tuesday, November 24, 2009 11:06PM Report Comment
 

5. cat and canary said...

yet another example of the collaborative shocking distortion of democracy made by this government and the top financiers.

Tuesday, November 24, 2009 11:13PM Report Comment
 

6. devo said...

Aha!

A question answered...

The banks and the authorities decided to keep the Bank’s operation secret. Alistair Darling, chancellor, said he had shared the Bank’s assessment that disclosing details of the lending to the two banks “would seriously jeopardise the financial stability of the system as a whole”

Source: http://www.ft.com/cms/s/0/b657a26c-d8e8-11de-99ce-00144feabdc0.html?ftcamp=rss&nclick_check=1

Tuesday, November 24, 2009 11:28PM Report Comment
 

7. devo said...

Someone who didn't know...

Michael Fallon, a Conservative committee member, was “outraged” by the delay in disclosure. While accepting a need for secrecy “for a few days”, he said there was no reason to keep the loans secret for a year.

Tuesday, November 24, 2009 11:31PM Report Comment
 

8. devo said...

Darling: do I have to tell you everything?

A line I have used many times, I must admit.

Tuesday, November 24, 2009 11:33PM Report Comment
 

9. paul said...

The Freedom of Information Act 2000 specifically states that there is an 'overriding public interest' (meaning that it trumps everything) when public money is given to private enterprise.

A textbook example of the government breaking its own rules.

Wednesday, November 25, 2009 06:46AM Report Comment
 

10. mark wadsworth said...

Lots of people must have known about it, that's why there was all that short selling going on last year.

Wednesday, November 25, 2009 12:12PM Report Comment
 

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