UK government details loans under RBS insurance scheme
The UK government has today issued details of the Royal Bank of Scotland's participation in the asset protection scheme and there is some concern about the make-up of the loans in question. More than half of the £280 billion of loans in the scheme have been agreed with foreign entities, something which is causing concern within the UK government. In reality, the UK taxpayer is paying to ensure loans which were agreed with foreign entities.
The massive document which details the RBS participation in the scheme also confirms that the UK government has the power to "parachute in" experts if it believes that the loans in question are not being managed correctly. Nobody quite expected the amount of detail which has been published and indeed there will be some embarrassment to those involved in the loans in question.
The Royal Bank of Scotland's entry to the scheme is funded by the UK taxpayer and will see the government's share stake in the business increase from 70% to 84%. It is also believed that the UK government has obtained the authority to block any staff bonus payments from Royal Bank of Scotland although whether this particular power will be used in the short to medium term is open to debate.
Budget Headlines : Government borrowing will be 11.9% of GDP in 2010
Government borrowing will be 11.9% of GDP in 2010...Read More
Talk is cheap as G20 discuss yet another meeting later in the year
Gordon Brown appears to be one of the main backers of Australia's bid to have a second special G20 summit later in the year to be held in Asia. This will be on top of the forthcoming G20 meeting in London and there are serious concerns that despite numerous meetings and numerous promises the G20 will yet again fail to deliver on the grand scale that the headlines often promise.
UK consumers set to pick up £4.7 billion National Grid tab
As the UK authorities look to put in motion a plan to hook up an array of wind farms and new nuclear power installations to the national grid over the next decade, it seems that UK consumers will eventually foot the bill. A report commissioned by the UK government has suggested a significant expansion of the current National Grid with 1000 km of extra cable required to bring new energy sources on...Read More
Will the euro survive financial difficulties in the euro zone?
There is no doubt that the ongoing financial difficulties in Spain, Portugal and Greece are impacting upon the reputation and investment profile of the euro. While there are suggestions that the short-term fall in the value of the euro, against the dollar in particular, could slow as "short" positions are closed many feel that the end of the fall is not yet in sight. So what can the European Union...Read More
Little support for rate cut in MPC meeting
The Bank of England's monetary policy committee (MPC) voted overwhelming in favour of keeping interest rates on hold last month, it has been revealed. Minutes from the MPC's meeting show that eight of the ten-member committee voted to maintain rates at their current level. Two members, John Gieve and David Blanchflower, had argued for a cut of 0.25 per cent to stimulate economic growth. The minute...Read More