Monday, 19 January 2009

New Bank Bailout- is it really needed ?

The government has today announced a second bank bailout package which it hopes will boost lending to businesses and individuals.

The original bank bailout failed to unblock the paralysis in the credit markets and it has been necessary for the government to take further measures.

But, is this appropriate?

Local Businesses and Chamber members are invited to give their opinions either as a comment here or email to the office - let us know so we can inform the BCC (British Chambers of Commerce)


Roy said...

The degree of exposure to the American Sub-prime market collapse has highlighted the fact that UK plc is highly dependant on the financial service sector for it's revenues and global trading position.

We gave up manufacturing, or being a world class leader in technologies years ago.

The FSA has proven to be a toothless, ineffective watch dog, more concerned with the obscure wordings on domestic insurance polices than exercising any real control of a banking system heading towards melt down.

What has happened to get us in this mess seems very well documented, how throwing lots of taxpayers money at it given that credit without any proven means of paying back got us in this mess seems not to be forthcoming from any politician.

The rot started when they bailed out Northern Rock, setting a very dangerous precedent.

If somebody can explain how the taxpayer gets a return from this I would be very grateful if they could share it with me and no doubt many others.

Roy Hinds - Lydd Airport

John said...

It is pointless shovelling large amounts of new money into the care and control of the same bankers who were content to run things in such a way that we got to the state we are now in. I can see the objections to nationalising the banks but the government should appoint some form of monitor in all banks to ensure that the money is put to best use for the country and not the bank's bottom line.

proactivepaul said...

The BBC is reporting Chancellor warns RBS over bonuses and suggests that the malaise will continue.

I predict that come Christmas 2009, there will be more banks under government control, and (apart from the inevitable sacking of Fred the Shred) very few significant departures of any high ranking directors!