Now that agreement has been reached to use UK taxpayer’s money to prop up the UK banking system, I hope that the something has been done to ensure that the bail out fund is not used:
- to pay greedy (and clearly incompetent) bank directors and executives bonuses, or;
- to pay juicy dividends to shareholders.
Actually, thinking about it some more, the directors, executives, funds managers, etc., should just be sacked now! They are the ones who have brought the banking system to this position and they are the ones who should be held accountable.
And speaking of accountable, the government better have made damn sure that our money is protected. The very least that we as taxpayers should be getting out of this deal is our money back. However, if the Chancellor and PM are really smart they’ve conjured a deal that gets us some interest into the bargain.
By the way, it’s worth keeping an eye on Robert Peston’s blog – he’s a BBC Business Editor and seems to have a pretty good handle on what’s going on. I think he also manages to explain things pretty clearly when he appears on the news.
STOP PRESS: Just as I’m about to publish this post, I see that the Bank Of England has cut interest rates to 4.5%!!!
Has the backup parachute finally opened?