Arab Today, arab today lawmakers britain could lose £66 bn on bank bailouts
Last Updated : GMT 13:50:10
Arab Today, arab today
Arab Today, arab today

lawmakers: Britain could lose £66 bn on bank bailouts

Arab Today, arab today

Arab Today, arab today lawmakers: Britain could lose £66 bn on bank bailouts

London - AFP

Britain could lose the £66 billion ($105 billion, 82 billion euros) it spent on rescuing Royal Bank of Scotland and Lloyds Banking Group and made key errors over failed lender Northern Rock, lawmakers said on Friday. The Public Accounts Committee -- a panel of British lawmakers -- issued the gloomy verdict in a eagerly-awaited report into the government\'s handling of Northern Rock, which has since been taken over by Richard Branson\'s Virgin Group. At the height of the credit crunch in 2008, Britain\'s then-Labour government was forced to nationalise Northern Rock and pump billions of taxpayers\' cash into Royal Bank of Scotland (RBS) and Lloyds Banking Group (LBG). \"The £66 billion cash spent purchasing shares in RBS and Lloyds may never be recovered, and the Treasury must also ensure it is prepared to deal with any future crisis, whatever form it may take, when it emerges,\" the committee warned on Friday. Taxpayers still own 81 percent of RBS and 39.6 percent of LBG following the enormously expensive bailouts. The committee meanwhile slammed the Treasury over its slow reaction to the banking crisis and its lack of adequate skills and knowledge. \"The Treasury was part of a monumental collective failure to understand how the pre-crisis boom could lead to a banking crisis,\" it said in the report. Back in September 2007, Northern Rock was plunged into turmoil when its exposure to the global credit crunch forced it to seek emergency assistance from the Bank of England, sparking the first run on a British bank in recent history. The lender, based in the northeastern city of Newcastle, was subsequently nationalised in February 2008. After a long period of uncertainty, the current Conservative-Liberal Democrat government last year decided to split Northern Rock in two, forming a \"good bank\" for its healthy businesses and a \"bad bank\" management firm to wind down toxic assets. Earlier this year, the Treasury sold the \"good\" bank -- Northern Rock plc -- to Branson\'s Virgin Money for £747 million. Lawmakers added on Friday that authorities had failed to nationalise Northern Rock quickly enough, and had failed to challenge its business plan. \"The Treasury lacked the skills to understand Northern Rock. It took too long to nationalise the bank and failed to make an effective challenge to the bank\'s business plan, first after nationalisation in 2008 and again in 2009 when deciding what to do with the bank,\" the committee said. \"The Treasury has started to address this lack of capacity: it has established UK Financial Investments (UKFI) with a small team of 12 people to manage the taxpayer shares in banks, and has conducted a review of its own skills and capacity. But huge challenges remain.\" Labour deputy Margaret Hodge, who chairs the Public Accounts Committee, added that the Northern Rock rescue would leave taxpayers with an overall loss of half a billion pounds.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lawmakers britain could lose £66 bn on bank bailouts Arab Today, arab today lawmakers britain could lose £66 bn on bank bailouts

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday