Are you a shareholder in either of the above banks? Perhaps not, but you may well be what is called a stakeholder, because each and every one of us who pays taxes has a majority stake in both Lloyds Banking Group (formerly known as Lloyds TSB) and the RBS (Royal Bank of Scotland).
Another question - would you be incensed if the money you had ploughed into either of these banks was used to bail out their branches in another country? I presume the answer would be yes.
That's exactly what's happening with Lloyds and the RBS. They have pumped almost £2.8 billion (yes billion) into their Irish branches over the past 10 months.
RBS's Ulster Bank (ROI) has received four capital injections totalling some £1.44 billion while Lloyds BoS (Ireland) has received two injections totally £1.32 billion.
The capital injections are largely needed to bail the Irish subsidiary banks out of bad loans made to Irish property developers at the height of the Celtic boom. Many of those loans have had to be written down heavily.
Brian Lucey, finance professor at Trinity College, Dublin said: "The scale of the figure is quite shocking. These are not leaders in the Irish market".
The taxpayer holds a 70% stake in RBS, which got a £20 billion bail-out and a 43% stake in Lloyds which received £17 billion.
RBS and Lloyds could not comment on whether the two banks expect to have to transfer further capital to their Irish businesses.
Meantime, Gordon Brown insists he will ensure British banks are better regulated and that publicly owned banks are safe in his hands.
The UK Treasury compounded the financial crisis in Iceland by initiating terrorism legislation. What is not so well known is that a few days beforehand the FSA permitted some UK-based banks to ask their off-shore branches (with so many UK taxpayers) to send them vast sums of money 'for safe keeping'. There are still thousands of British citizens living abroad and wishing to continue to save within the UK, who have seen their life savings vanish. The UK takes no responsibility for these people because they banked off-shore. It was the UK government's legislation which forced them to bank off-shore if they wanted to save with a British bank because, if they didn't have a permanent home in the UK, they were refused a UK- based bank account.
Surely anyone who pays taxes must be disturbed by this? The government insist they have control of these publicly funded banks but this is evidence that is untrue.
For government to allow £2.8bn of taxpayers' bail-out money to be used to prop up troubled branches in Ireland is insulting to many small businesses who are struggling to keep afloat - not because of poor productivity, but because vital overdraft facilities have been removed.
Source: London Evening Standard
Donkey work by Faux Cul
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18 comments:
Disturbing is putting it mildly, it is scandalous but so representative of the laissez-faire regulation and control by Brown that laid the foundations of the banking collapse and in continuum is allowing the banks to privatise their losses whilst, at the same time, stuffing the people paying for their mismanagement.
Wv = shoddi
Lampost times are a coming?
subrosa,
That is just the tip of the iceberg but you can bet your life that, as the General election approaches, much play will be made of the "mantra" that an independent Scotland would not have been able to bail out the "Scottish" banks.
It has started already but will intensify as Murphy and Brown get more desperate.
It will be quite ironic if the economic situation in Eire stabilises before that of the UK.
What we should have done is to separate out the casino banking arms of the banks from the High Street banking division and let former sink whilst guaranteeing the deposits in the latter.
Casino Banking and High Street Banking are two different businesses and should not be allowed to be mixed.
What we have now is not only the worst outcome, nationalising the losses and allowing the continued privatisation of the gambling end.
I wonder what was in it for Brown etc? Fiddly money for him and his mates????
OOPPS
NATIONALISE THEIR LOSSES, NOT PRIVATISE.
Sorry
Have a wee read of this FC, sent to me by a reader:
http://www.telegraph.co.uk/finance/comment/jeffrandall/6252407/Gordon-Brown-must-be-mad-to-want-to-discuss-his-economic-record.html
But there's an easy counter-argument to that Brownlie because it's all hypothetical.
If Scotland was independent we would have banks which behave as banks and not casinos as BL describes them.
it will be just the same under the torys nothing will change.
anyway what make me laugh is due to Quantitative Easing the banks have been selling their bonds to the Government..and they have been investing the money in shares and pocketing the profits........hence shares have been rising
what a lovely merry go round for the banks it impossible for them to lose.
it will be the same under the torys
wait and see
It is all quite simple really SubR
Gordon Brown thought he had found the Money Tree or the financial equivalent of perpetual motion.
The shuffling round and round of bit of paper in The City and the extended financial network amounted to just that and Brown siphoned off a tax share rubbing his palms of his nail bitten hands as he did so. Happy daze!
It was of course an illusion as we have all come to understand, that is to say all but the city perpetrators, who have been allowed to carry on regardless.
Somebody wins so somebody loses. The problem with that axiotmatism is that the person who lost just borrowed more and played again until the whole house of cards collapsed, leaving the great unwashed to pick up the bill.
I agree with Mr Myxz;okwefjn;kjnkjf
that Cameron will do hehaw and continue on the same path.
Who will be the target sucker this time round; the Arabs, the Chinese (not a chance in Hell as they will shaft us, the cunning little b'stads)or Africa (repossession of our charity donations) or the emerging markets in S America and Asia.
Please note that HSBC have moved their centre of management control to Hong Kong, although they remain HQd in London for regulatory reasons. They also see the day of the almighty $ as gone and view the World as 4 economic and currency zones; Asia, Europe, N America and S America (based on Brazil)
Money may bear a denomination and a currency marker but, really today it has no nationality.
The fear control manipulation of populations and the siphoning off of wealth created from that is the big new game.
It is all a substitute for war as a driving force for economies?
Some more sh1te stirring
"Global Warming" has now become "Climate Change" as the warming bit has been debunked.
As the climate panic bubble is deflated, they won't allow it to actually burst ping, stand by for the new World mass hysteria deflection to rise in voice;
World Water Shortage
It is happening as we sleep.
These are concerted global hysterias and are the modern day answer to the old fashioned Wars to generate wealth?
So what other 'kindnesses' will Bliar receive apart from his recently aquired Irish passports? His imaculate conversion to the one true faith will be helpful and aid his becauses,no doubt.
... and the financial generousity bestowed on Eire from the long suffering North and South Britons will no doubt have an influence on the bartering round the European table on who becomes what.
So the Eire government is going to be helpful,by supporting Bliar's ambitions, then?
Courtesy of Cuddles,Darling, McCavity and their money people cabal, naturally.
I knew about HSBC moving to Hong Kong FC and that made sense to me because of the Asian market.
Lots of bowing to the Chinese these days (Salmond is guilty of that too) so they're certainly in the firing line for subbing us.
They need wars too don't you think? Must have wars going on to keep their arms selling pals happy.
Strangely enough, someone emailed me last week about that very subject FC 0 asking when did Global Warming vanish and become replaced with Climate Change.
The water shortage panic has begun, can't remember which country was on the news the other night but it was one in Asia if I remember.
FC sent me this video wisnaeme. Tongue in cheek of course:
http://www.youtube.com/watch?v=DMqUWFXdxBM
The Icelandic police have just gone into Kaupthing and KPMG Iceland to turn the place over. They are closely involved with RBS. This in turn has a pile of bad loans to certain City investment firms who are based off shore and who may well be insolvent, who knows? In the mean time they are creaming off their UK income streams to other tax havens as much as they can. This is where a lot of the QE money is going. We pay the bills.
Demetrius
Nice work if you can get it
Its' the same the whole World over It's the poor wot gets the blame
It's the rich wot get the pleasure
Ain't it all a fwukin shame.
Demetruis have you a link about that please?
I'm indirectly involved with the Kaupthing, Singer and Friedlander, Isle of Man issue.
The world's economy is mostly based on paper trading these days with no relation to the real economy.
Was talking to some farmers yesterday who were having a decent harvest but poor prices. I advised that this was supply and demand - the greater the supply the less the demand and prices fall. They clocked me for an idiot straight off.
The futures traded in Chicago were regularly 20 - 30 times maximum possible yields for any crop they explained. Prices bear no relation to actual reality. They are an artificial construct of casino banking.
BTW - Global Warming is a media term that has been applied to the concept of climate change. And water shortage is a real phenomena that has motivated big business to corner the market.
It's ok Demetrius, I've just been told this is known. Also I was informed the Icelandic police have raided banker's homes and other businesses connected with the collapse.
Pity the UK and Isle of Man police weren't interested enough to try to sniff out the culprits here isn't it.
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