Bank ChargesI was reflecting on the fact that we now own 84% of
RBSand 43% of
Lloyds-
TSB after reading the latest estimate of the real cost of the bank bail-out. The total cost has now risen to
£850,000,000,000 I think it is more appropriate in red.
This is made up as follows:
£76bn To purchase shares in RBS and Lloyds Banking Group
£200bn Indemnify Bank of England against losses incurred in providing over £200bn of liquidity support
£250bn Guarantee wholesale borrowing by banks to strengthen liquidity in the banking system
£40bn Provide loans and other funding to Bradford & Bingley and the Financial Services Compensation Scheme
£280bn Agree in principle to provide insurance for selection of bank assets
£671bn Total Government spending in the financial year 2009-2010
In addition the government has also paid the following in financial advice:
£32.9m Slaughter & May - Commercial legal advice
£15.4m Credit Suisse - Financial advice on a range of measures, including Bank Recapitalisation and the Asset Protection Scheme
£11.3m PricewaterhouseCoopers - Advice on APS
£8.7m Ernst & Young - Due diligence on APS, Northern Rock
£7.7m KPMG - Due diligence on APS
£7.4m Blackrock - Valuation advice on APS
£5.3m Deutsche Bank - Financial advice on a range of measures
£5m Citi Financial - Advice on Aps
£4.9m BDO Stoy Hayward - Valuation of Northern Rock
£4.5m Goldman Sachs - Financial advice on Northern Rock
£1.5m Morgan Stanley - Financial advice on Bradford & Bingley
£2.5m Other advisers - Financial advice on a range of measures and proposals to revive Britain's ailing economy
As I walked around Coventry I came across a cluster of banks. I know it is unscientific and unjustified and maybe even
mischievous, but does the
opulence of these bank buildings not tell us something?
Natwest (RBS)84% owned by you and me
Lloyds-TSB43% owned by us all
BarclaysInvited Middle East investment
HSBCNo help from anyone