Chancellor defied Treasury over RBS ‘toxic loans’

Kashflow logo
Accounting WEB
Editorial team
Share this content

Politicians are calling for an independent valuation of the government’s asset protection scheme following controversy over publicly funded plans to insure Royal Bank of Scotland’s toxic loans.

A leaked letter from Treasury permanent secretary Nicholas Macpherson to Alistair Darling revealed that the chancellor acted against a warning from the Treasury by underwriting £282bn of RBS’s toxic loans – some of which could cover legally tainted assets.

In the letter, Macpherson warned: “It will be impossible to make the scheme work without providing insurance for some of the tainted assets – that is, assets whose legality may not be certain”.

In response to the letter, Darling asserted that “wider public interest”...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.