How has the UK banking bailout gone so wrong?
After initially grabbing the attention of governments around the world the Gordon Brown led banking bailout has been crumbling over the last few weeks. We're now on the verge of bank bailout part three and still the authorities appear unaware of contractual bonus arrangements and contractual pension arrangements for the banking companies in which they have taken massive stakes. The situation with Sir Fred Goodwin's pension fund is the latest in a long line of embarrassing headlines highlighting a substantial waste of UK taxpayer's money. So why has it gone so wrong?
In hindsight the government appears to have rushed into the banking bailout without doing due diligence which any government and any company should do as a matter of course. After investing literally billions upon billions of UK taxpayer's money the situation began to unravel a few weeks ago, as further funding issues and contractual arrangements became apparent. The failure of the banking bailout so far has forced the UK authorities to pursue a quantitative easing strategy which will literally see the Bank of England printing more and more money to fund future bailouts and future fiscal stimulus programs.
While time was initially against the government when the banking bailout was first announced their complete lack of due diligence has come back to haunt them and could be the "straw which broke the camel's back" as far as UK taxpayers are concerned.
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