£50 billion bailout for banks - by taxpayers

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The government has just agreed a 50 billion emergency bailout package to rescue Britains banks. The measure is designed to prevent further banking failures during the ongoing global banking crisis and free up liquidity in the system.

A government backed guarantee is designed to increase confidence between the banks, who are presently not lending to each other. Any British bank can now effectively call on the government to guarantee any emergency capital borrowed from another financial institution. The result for any bank following this course of action will be a part-nationalisation, courtesy of the taxpayer. This is bound to have an effect on banking remuneration structures and bonus systems in the long run.

Gordon Brown, prime minister is expected to say that, "Extraordinary times call for...

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15th Oct 2008 11:06

Couldn't agree with you more David.

I'm even wondering just why we seem unable to support our aged pensioners, pay for drugs and treatment of certain illnesses, have services cut, have no money available for this and that - then suddenly this crowd of incompetents we have governing us can find billions, just like pulling a rabbit out of the hat!!

It beggars belief.

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By s1dap
14th Oct 2008 17:00

Thank God I live out of UK in Asia. All these problems do is prove that Bankers really are Wankers. The boards of these incompetent outfits should be fired en masse along with all the big bonus slimeballs they employ. Let em go to the wall I say.

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