Much of Monday’s UK bail-out package for banks “simply unstitches bits of the October bail-out that went wrong”, in Lex’s view. Government guarantees against extreme losses on dud assets may persuade lenders to stop hoarding capital, as should the Financial Services Authority’s belated clarification of capital requirements. But this will not reverse the recession’s course. With the state now insuring lending to companies big and small, Godon Brown is giving the dogs in the country’s dwindling pack of banks a last chance at a life in the private sector. Investors should brace for nationalisation.

This entry was posted by Gwen Robinson on Tuesday, January 20th, 2009 at 5:51 and is filed under Uncategorised. Edit this entry.