Is there a major cover-up in the UK banking sector?
As the news of more toxic losses across the UK banking sector breaks there is concern that many problems being experienced by UK banks are not being released into the public domain. While there is a need to clarify and confirm any potential losses there also an obligation for UK banks to inform shareholders as soon as possible regarding any substantial change in this circumstance. The fact that Gordon Brown has come out suggesting that many UK banks may have substantial losses on their books would suggest the government is in receipt of detailed information on the subject.
If this is the case, this will reduce confidence in the UK banking sector, the government and any future bailout. How can UK taxpayers be expected to fund a rescue package for a challenge which has not yet been identified wholeheartedly?
While there is a need to support the UK banking sector for obvious reasons, more and more UK taxpayers are becoming concerned that the substantial figures poured into the sector have produced very little return as yet. Some are calling for a delay in the bank rescue package part two and suggesting that some of the weaker UK banking institutions should either be left to market forces or become part of larger groups. This constant bailout of the sector does not appear to be working at the moment and the pressure on the UK government budget is building all of the time.
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