FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Mervyn King suggests bank nationalisation could happen

While Mervyn King, the Gov of the Bank of England, has already expressed his views regarding the UK banking sector and the resistance to increase liquidity in the marketplace, he has today been more forthright in his views. Aside from the fact the government may look to nationalise businesses which seem to go against the conditions which were allegedly agreed prior to the rescue package, Mervyn King believes that the government may even be forced to nationalise banks anyhow.



He is now suggesting that if the recession is as bad or worse than that experienced in the 1980s many more banks will suffer from liquidity problems and asset depreciation and require further assistance from the government. This may see a number of leading UK banks taken under government control leading to a very difficult marketplace.



Some observers believe this doomsday scenario is being used to smash open the door to extra liquidity from the banks with others suggesting that the sector will need more help if a quick recovery does not arrive. Whatever the outcome for the financial sector there is no doubt that there are still many challenges ahead and the banking sector will at some stage need to get the government back onside.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue