Alistair Darling copies US policy on bank nationalisation
Alistair Darling has this evening come out and suggested that the vast majority of UK banks should retain a percentage of private investors so that a return to the private sector can be completed as and when the time is right. The UK government currently has significant holdings in a number of leading UK banks and there has been a suggestion that the likes of Lloyds TSB and possibly Royal Bank of Scotland could be nationalised in the short term. However, tonight's announcement appears to allay any fears in this direction.
This is a direct duplication of the ongoing US policy which was confirmed by the Federal Reserve earlier today. There are hopes that the 3% rise in the US stock market will be replicated in the UK when trading resumes tomorrow although nothing is ever certain in the current economic environment.
While some weeks ago Gordon Brown was said to be leading as others followed, there appears to have been a substantial turnaround in this policy and the UK government looks as though it is duplicating the policies of the new Barack Obama government. It has to be said that so far so good for the new president of America but there is still a long way to go until we see any sign of recovery in either the US or the UK economies.
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