Like a virgin who won't go "all the way", this Government is playing silly buggers when it comes to Northern Rock. Just days before Christmas the Treasury has taken things one step further by extending financial guarantees, offering to cover any loss by financial institutions so the bank can operate normal banking services.
The move, according to the BBC, could be seen as taking the bank "a step closer" to nationalisation and will also lead to greater financial exposure for taxpayers ie US who have already lent Northern Rock an estimated £26bn.
According to Mervyn King, the Governor of the Bank of England, the additional guarantees amounts to 30% of the Northern Rock's balance sheet.
"This was a natural extension to help the company. What is important now is to find a new management to take the bank forward," he says. That management must be and should be - the public sector. And it's frankly astonishing that the Treasury will shell out billions of pounds of our money for this enterprise yet fail to rescue operations like Remploy.
Tuesday, 18 December 2007
NATIONALISE NORTHERN ROCK NOW!
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2 comments:
I love your opening line :)
The whole situation is getting a bit silly, though, isn't it. I still don't know whether nationalising the bank is the right way to go but I agree that if that is what the government wants to do, they should just get it over and done with!
www.realfd.net
surely this will give nationalisation a bad name
we should have let the capitalist bastards swing
Its their system ????
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