Hundreds of billions of UK taxpayers money to bail out the banks again

[Godfather77]

Hundreds of billions of taxpayer money to bail out the banks again
January 19, 2009
Full article: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5543206.ece

The taxpayer will be asked to gamble hundreds of billions of pounds today in a second bank bailout. The Government will offer a massive package to guarantee lending and insure banks' bad debts.

High street lenders were locked in negotiations last night over the terms of the insurance plan, which will provide payouts from the public purse if the value of a bank's “toxic assets” falls below certain levels. The package of guarantees and additional loans will be announced before the stock market opens. Other elements include:

- The news that the Government has increased its stake in the Royal Bank of Scotland from 58 to 70 per cent;

- A new £100 billion mortgage guarantee scheme to underwrite lending between banks and financial institutions, first proposed by Sir James Crosby, the former HBOS chief executive;

- An extension to the £250 billion credit guarantee scheme announced in October until the end of the year;

- Provisions for Northern Rock to start lending to customers again, if approval is granted by the EU;

- A new Bank of England scheme to replace the Special Liquidity Scheme that allows banks to swap illiquid assets for gilts.

The Treasury had been looking at the proposals for some weeks after it became clear that the initial £37 billion bailout in October had failed to provide a sufficient platform for normal lending to resume. However, the plans were given added urgency by Friday's sharp stock market falls amid fears that the banks were set to reveal further huge writedowns.

More bad economic news is expected this week, with unemployment figures on Wednesday expected to show that two million people are now out of work.

[larsonstdoc]

  Brits you are like us---it's not your government anymore.  They are thieves.

[anchorage]

It's a fraud. They pretend that they're somehow underwriting 'bad debt', somehow bolstering legitimate banking operations. They're not. This money is being poured in to prop up the massive, unfunded derivatives exposures. These derivatives exposures had little or nothing to do with the legitimate intermediary functions of the banks.  They were, however,  the source of the huge profits growth seen at banks in 'the good times'.  The same' profits' on which the enormous bonuses were based and paid, latterly from bail out money.

Still the government lies.

So, we've moved into the next phase of financial meltdown. Governments 'underwriting' that which they are incapable of funding other than through the pure printing of money. That, folks, is the ultimate strategy and lies behind the move to exempt the BoE from having to publish its balance sheet. These crooks now need total secrecy and the cover of night to carry out their crooked schemes.

Policymakers have ensured the current depression is long and deep. They have protected the criminals and continue to enrich them. They have abandoned the real economy. Civil unrest is spreading in Europe. As unemployment rockets and the dispossessed realise they've been duped by the bankers and been peddled snake oil by the politicians, expect things to get very ugly.  People have been sold the 'get rich for nothing' mantra for so long. They're wholly unprepared for reality.