ATS EXCLUSIVE: UK Govt. to part nationalise banking system

okay, I have more information.

The UK rejected a US style bail out because the Prime Minister believed it was too risky and similar to the Japanese bail out (Japan debt is now 145% of GDP.)

In discussion with the Bank of England, bankers and the FSA; the Swedish bail out system will be introduced. Some, if not all, high street banks will have the UK government buy preference shares in the banks, inject capital, and then sell its stake when the markets are back to normal.

This £50 billion is less riskier, Treasury believes it will make a profit unlike the $700 billion Congress deal (which results in the government holding debt and now equity as insurance.)

reply to post by candyfloss


Just look at the ATS point and the membership date. That should tell you enough usually

reply to post by infinite


Interesting that they see the US bail out as a bad idea for their economy, that means more smart people are working with the UK government that what we got here in the US.

Also lowering the interest rates will start eating at the Euro, so I guess the euro will take hit just like the dollar.

I am still wondering where all the money has gone but then again that will be irresponsible for me to ask knowing that all the money that this banks has been profiting from was nothing but an illusion, a big bubble of nothing but revolving debt.

reply to post by candyfloss


Well, I have been long enough here in ATS to trust Infinite with his posts. That should be enough.

reply to post by marg6043


It is rumoured that many European nations are to introduce the "UK model" to their banking system.

Italy is reported to be making arrangements.

Rumour I've been hearing from some contacts...

Germany could introduce this bail out package too. The Germans believe it is cheaper, less riskier and more profitable than the US package. Italy is very keen to join the alliance too.

EU Commission have backed the UK package and this is being interpreted as a green light for a Pan-European rescue now.