Can the UK taxpayer actually benefit from the bank sector bailout?
The government has announced the creation of a new company managed by Sir Philip Hampton which will be in sole charge of the government's various bank shareholdings and direct banking operations. Not only is there a need to ensure the shareholdings in UK banks are administered on an arms length basis but there is also a need to insure that taxpayers stand as good a chance as possible of receiving a return in due course.
The government has already come under severe pressure because of the way Northern Rock has been run under state control whereby we have seen a massive increase in the number of repossessions, heard about the stronger customers move elsewhere, something which has left the UK taxpayer with the rump of mortgages which no other bank would take on. Even though we saw the headlines suggesting that the Northern Rock loan would be paid back ahead of time this situation has gone very quiet and it appears the bank may be falling behind on the initial forecast for repayment of the loan.
However, the government is sure to come under renewed pressure for the number of high-profile and high earning individuals brought in to manage state owned operations and shareholdings.
Share this..
Related stories
Is the UK government passing the regulatory buck?
Despite the fact that the Bank of England has been central to the UK regulatory system for hundreds of years it is noticeable that in today's White Paper regarding regulatory changes in the UK there were no new powers for the bank. Instead the UK government has chosen to increase the stature and power of the FSA (Financial Services Authority) amid accusations that the government has more power and...
Read MoreYoung people to be poorer than parents
20/11/2015 Young people may be poorer than their parents at every step of their lives, according to a new report from the Institute of Fiscal Studies (IFS). The report showed that the slow rate of growth and the increase in pension values means that young people are set to lag behind earlier generations in wealth terms. The study also looked at peoples attitudes to saving and pensions, a...
Read MoreRent to own schemes “rip customers off”
11/02/2015 A group of MPs believe that people who buy products on a “rent to own” basis are being ripped off. Customers will take out an agreement to buy a product, such as a television or a washing machine, and pay weekly or monthly instalments until they own it. These agreements frequently charge interest rates of up to 94%, and it is often the poorest parts of the country who are targ...
Read MoreWill the council tax freeze hold in Scotland?
There are real concerns this evening that the Scottish government has lost the plot in relation to their proposed freezing of the Scottish council tax next year. While this is a continuation of the move which began last year, they are only promising the same £70 million finance package for councils to enable them to freeze the tax.
However, anybody who lives in the UK knows that...
Kraft Foods bags Cadbury for £11.9 billion
As we covered early today, Kraft Foods and Cadbury have announced details of a recommended offer for the UK giant which values the company at around £11.9 billion. The deal is a mixture of shares and cash with five pounds and 0.1874 Kraft Foods shares for each Cadbury share. This values the company's shares at £8.40 per share but there will also be a special 10p dividend on top of this, bringing...
Read More