In These New Times

A new paradigm for a post-imperial world

No new bail-out for UK banks, says Chancellor George Osborne

Posted by seumasach on November 13, 2010

Having isolated itself internationally, Britain now faces the reality of its own dreadful plight: as the economy implodes and the housing market collapses  the accumulation of bad debts means another bailout for the beggar barons.

Telegraph

13th November, 2010

Responding to a report from the New Economics Foundation (NEF), Mr Osborne said he saw “no indication” of a need for new capital injections to support the British banking sector.

Mr Osborne’s remarks were supported by the British Bankers’ Association, which said UK banks were “well placed to weather any financial problems that may arise in the future”.

The BBA added: “UK banks have already put in the work to rebuild their businesses and exceed the international standards for capital and liquidity.”

n a report titled ‘Where did our money go?’, the NEF said Britain’s major banks “may well be asking for another hand-out from the public purse in 2011”.

Asked about the NEF report yesterday, Mr Osborne said, “I am certainly not expecting and have no indication at all that any British bank needs any further government support”.

Tony Greenham, head of finance and business at the NEF, said the think-tank’s report showed the “need for urgent reform of the banking system to ensure that bailed-out banks are not allowed to repeat their failures”.

Fears of a new banking crisis have been raised in recent days after Ireland last week announced a new package of support measures for the country’s banks.

The Irish bill for the bail-out of its banking system could reach €50bn (£43bn), with support for lender Anglo Irish Bank set to hit as much as €29.3bn, roughly equal to the nation’s annual tax take last year.

Mr Osborne made reference to the latest bail-out of Ireland’s banks and said the British banking system was “much more stable”.

The BBA said: “UK banks have already put in the work to rebuild their businesses and exceed the international standards for capital and liquidity.”

 

 

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