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admin · Site Admin Joined: 25 Sep 2008 Posts: 427

I cannot understand the logic of this move.
In the good old days - I used to be a banker in a previous existence- its a long time ago now- depositors funds were used to finance lending and the margin between interest charged and paid was the Banks profit.
Then some clever people started playing the markets and taking positions where lots of money could be made but also at a risk of similar or larger losses depending on the markets.
Governments changed the strict rules for banks in the UK re liquidity ratios etc and allowed some of these dubious bits of paper to be included in reserves and asstes figures.
All is coming home to roost now- irresponsible lending backed by ephemeral security is now going to cost each of us money in taxation as well as any losses directly resulting.
Why sell off the assets of a business and keep the liabilities?
Nonsense.
But then few of our government have had to earn a living in the real world.
Nick