So where do we start, it’s a historic day in UK economics for many reasons not least the UK Goverment offering a 50 billion further bailout to the banks at our expense, and underwiting the toxic debts of the UK banks with a bad debt insurance policy.
You can read about all this stuff on the news sites, but what particularly interest us is the way that the Goverment’s banking help package has helped put RBS to the sword!
Not content with sucking up 37 millon pounds of our money to own 70% of the company in the Autumn the Government looks like its bank bailout package has backfired upon the Goons who control RBS.
On the announcement of the latest rescue package the City has just responded with the biggest single corporate loss in UK history – RBS shares are currently down nearly 70% of their trading value this morning, making the bailout worth nothing!
Share trading has probably stopped by the time I’ve finished writing this.
Where this leaves RBS’s insurance arm which includes Direct Line Churchill etc. remains to be seen. Probably going to get snapped up very cheap by the likes of one of the big suitors that have been courting it for the last year.
Insuranceblogger would like to point out that we foresaw this months ago (read the posts) and incidently would like to see any none performing bank go to the wall. Whatever happened to the free market economy – Ha! Ha!
Now’s the time for 0% interest rates Mr Brown – great a free toxic mortgage!!!