Uk government propses plan to save uk banks

[muz]

the uk government has today announced a £500 billion deal to save uk banks
which includes a £50billion cash injection by the uk government to banks and up to £250billion short term loans from the bank of england and £200 billion in debt grantee to banks
http://news.bbc.co.uk/1/hi/business/7658277.stm

personally i think this whilst putting taxpayers money at a small bit of risk i think something needs to be done to save the banks from going under because if that happens the cost of fixing the problem will be far in excess of £50billion

 

[Computer Head]

When you do the conversion, that's more than what the US used for their version of the bailout. ( ~ 873B USD) And our main index (Dow Jones Industrial) has dropped 14% in the last 5 market days as a result. It will be interesting to see what the UK markets do with news of this bailout.

 

[muz]

but i think that our bailout plan also has restrictions with it , for instance banks that will benefit from this plan are going to have to agree to fsa regulations on executive bonus's and dividends ,

also not all of this money is exact capital that will be made available , for instance you can subtract £250billion as that will infact be repayable loans from the bank of england