If you use Google Newsearch just now and type in ‘bailout’, the headline story is from Forbes: Some Bailout.
Vidya Ram for Forbes laments the £50,000,000,000 ‘bailout’ where the Bank of England exchanged it’s high-grade government bonds for low-grade/toxic mortgage securities and possibly other assorted debt in order to shore up the private UK banks which had been operating with poor/failed business models.
Forbes notes that despite the cash injection, the FTSE 100 fell 0.2%
This is the second time in six months the British tax payer has found themselves bailing out private banks. Previously taxpayer’s exposure to Northern Rock reached up to £100,000,000,000.
A British taxpayer’s individual exposure to private bank’s debt could now be £5,000 each.
Tags: bailout, bank of england, banks, exposure, northern rock, taxpayer, uk
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