Government poised to unveil bank rescue plan
Tue Oct 7, 2008 7:02pm BST
LONDON (Reuters) - The government is poised to announce a "comprehensive" rescue package for the banking system, the BBC reported on Tuesday, including the possibility of injecting capital into banks.
"It will be big, it is the government's attempt to stabilise the banking system," BBC economics correspondent Robert Peston reported. "The Treasury has been working on the plan for weeks."
The plan is said to include provision for a stand-by facility that would effectively ensure that no banks would be able to run out of cash, he said.
Sky Television said the plan would be unveiled on Wednesday morning.
Prime Minister Gordon Brown, the chancellor, Alistair Darling, and the governor of the Bank of England, Mervyn King, held talks on the financial crisis on Tuesday evening.
(Reporting by Luke Baker; Editing by Jodie Ginsberg)
******************************************************
[link to uk.reuters.com]
rancelot User ID: 240916 10/7/2008 2:29 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Breaking News
Sky News
7:10pm UK, Tuesday October 07, 2008
The Chancellor will make a statement about a rescue plan for British banks following a meeting with the PM, the Governor of the Bank of England and the head of the FSA.
Gordon Brown called the crisis meeting at Downing Street this afternoon after a dire day in the markets for the UK's major banks.
They have been discussing what the Government should do next to resolve the banking crisis and proposals for the long-term reform of the financial system.
Earlier, the Prime Minister's spokesman has refused to comment on whether the Prime Minister is considering a plan to part-nationalise British banks
(snip)
********************************************
[link to news.sky.com]
Anonymous Coward User ID: 487016 (OP) 10/7/2008 2:45 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Nationalisation fears spark stock plunge
The Australian
October 08, 2008
SHARES in Royal Bank of Scotland plunged more than 35 per cent to under pound stg. 1 ($2.40) on fears a pound stg. 40 billion bailout of high-street banks would result in a partial nationalisation of several.
RBS shares fell to a record low of of 95p on suggestions that it had approached the Government about a capital injection. Lloyds TSB was down by almost 20 per cent and HBOS, its putative merger partner, fell by 18 per cent.
The position was not helped by a warning from the British Chambers of Commerce that Britain is already in recession and could face a prolonged downturn.
In London, the FTSE 100 opened up 1.8 per cent, rising 84.65 points to 4673 points, and soon extended those gains, moving up almost 3 per cent. But the banking sector fears reversed that with the FTSE off 42.81 points at 4546.38 in mid-morning trading.
The volatile start to trading followed Monday's record 7.8 per cent fall as panic swept global financial markets, sending America's Dow Jones industrial average down to a four-year low after dipping below 10,000 points for the first time since October 2004.
At one point the Dow was down more than 800 points.
The swings in London were mirrored in other European markets, as France's CAC 40 and the Dax in Germany both gave up earlier sharp gains.
Dealers had been banking that plans by the Government to pump pound stg. 40 billion of fresh capital into high-street banks coupled with banking reform legislation, due to be outlined today, would calm markets. The bill is expected to include formal measures for the authorities to take control of a failing bank and will give the Bank of England statutory responsibility for maintaining financial stability.
The Chancellor last night held talks with banking executives on how the scheme, which could see the Government effectively part-nationalise such banks, would work.
(snip)
***********************************************
[link to www.theaustralian.news.com.au]
Anonymous Coward User ID: 515785 10/7/2008 3:21 PM
Re: Breaking news: Britiain about to partly nationalise British banks
In this particular situation there is an oxymoron:
Smaller countries appear to be stronger in dealing with the problem (Iceland is an exception). Smaller countries are less exposed to "toxic" debt market so it is easier for their govs to guarantee a minimum deposit even by law.
EU decided on a 50k euro minimum but I just read that Austria, Spain and Greece will rise it to 100k.
When you guarantee deposits its a risk because you may have to inject money and save banks and in some cases bad banking practices will be covered too (some fat asses will be saved). However this could also result in foreign money to spread widely in countries with guaranteed banking integrity.
This whole story looks like a big big money laundering to me... Govs around the world spending mountains of money to save banks and bank toxic assets/investments/practices will be purified! Peace and prosperity for all ;p
Alistair Darling was about to raise the limit covering the government guarantee of UK bank saving accounts. After the Royal Bank of Scotland share value dropped by over 35% today, he knew he had to do something BIG in order to return confidence and stop the slide on bank shares. The question is: will it do the trick?
Fool User ID: 501705 10/7/2008 4:17 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Alistair Darling was about to raise the limit covering the government guarantee of UK bank saving accounts. After the Royal Bank of Scotland share value dropped by over 35% today, he knew he had to do something BIG in order to return confidence and stop the slide on bank shares. The question is: will it do the trick?
Quoting: Cholem Yesodeth
No
Anonymous Coward User ID: 487016 (OP) 10/7/2008 4:34 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Here's a link to a video report by Channel 4 News, who broke the story of the British government buying into British banks:
[link to link.brightcove.com]
Anonymous Coward User ID: 495562 10/7/2008 4:36 PM
Re: Breaking news: Britiain about to partly nationalise British banks
well that CGI was lame, there were no blast waves and the size of the final meteorite actually asteroid was about a mile wide and 1.5+ miles long it would have done a heck of a lot more than just cause a crater that looked about 2 miles accross in that CGI video.
Anonymous Coward User ID: 518859 10/7/2008 5:02 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Isn't derivatives why they put all those guys in jail in the 80s/90s? So why in the world would governments jump in to such an obvious ponzi-pyramid? It is all based on the idea that prices are always going to rise forever.
That is about as stupid as it gets. Eventually somebody pays. I have a feeling that the Individuals playing in this game meant to stick it to the governments. And they have.
Anonymous Coward User ID: 487016 (OP) 10/7/2008 5:03 PM
Re: Breaking news: Britiain about to partly nationalise British banks
Disclaimer: This website exists for entertainment purposes only. The reader is responsible for discerning the validity, factuality
or implications of information posted here, be it fictional or based on real events. Moderators on this forum make every
effort to review the material posted on this site however, it is not realistically possible for our small staff to manually
review each and every one of the more than 5000 posts GodlikeProductions gets on a daily basis. The content of posts
on this site, including but not limited to links to other web sites, are the expressed opinion of the original poster and are in
no way representative of or endorsed by the owners or administration of this website. The posts on this website are the opinion of
the specific author and are not statements of advice, opinion, or factual information on behalf of the owner or
administration of GodlikeProductions.
This site may contain adult content and if you feel you might be offended by such content, you should log off immediately.
Not all posts on this website are intended as truthful or factual assertion by their authors. Some users of this website are participating in internet role playing, with or without the use of an avatar. NO post on this website should be considered factual information on face value alone. Users are encouraged to USE DISCERNMENT and do their own follow up research while reading and posting on this website. Godlikeproductions.com reserves the right to make changes to, corrections and/or remove entirely at any time posts made on this website without notice. In addition, Godlikeproductions.com disclaims any and all liability for damages incurred directly or indirectly as a result of a post on this website.
This site is provided "as is" without warranty of any kind, either expressed or implied. You should not assume that this site is error-free or that it will be suitable for the particular purpose which you have in mind when using it. In no event shall Godlikeproductions.com be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.
Some events depicted in certain posting and threads on this website may be fictitious and any similarity to any person living or dead is merely coincidental. Some other articles may be based on actual events but which in certain cases incidents, characters and timelines have been changed for dramatic purposes. Certain characters may be composites, or entirely fictitious.
We do not discriminate against the mentally ill!
Fair Use Notice: This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to civil rights, economics, individual rights, international affairs, liberty, science & technology, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information please visit: http://www.law.cornell.edu/uscode/17/107.shtml
This Disclaimer is subject to change at anytime.
Mail Webmaster with questions or comments about this site.
