Wednesday, April 18, 2012
UK Bailout
Many people are wandering why the United Kingdom government decided to deposit nearly $ 90 billion into banks, while lending back $ 350 billion to the taxpayers. When it came time to make the final decision, the UK government realized they had no choice. Panic in the markets is at a steady increase, while banking shares have been at a steady downfall. British Prime Minister Gordon Brown, along with the help of Chancellor Alistair Darling, knew that something must be done immediately to bring back the confidence within the banking industry. Urgent action was agreed upon, and a bailout plan was put into action.
The UK government created a plan that consisted of funding the banks with over $ 90 billion, in exchange for shares, in hopes of reassuring the markets that the credit crunch would be survived. The loans received from the banks would total over $ 350 billion and would be used to stabilize the economy.Link (submitted by Will)
UK unemployment down
UK unemployment fell by 35,000 to 2.65 million in the three months to February, the first fall in almost a year, official figures have shown.
The jobless rate was 8.3%, according to the Office for National Statistics (ONS), down from a 12-year high of 8.4% in the previous three-month period.
The unemployment total for 16-24 year olds was down 9,000 to 1.03 million, taking the unemployment rate for that age group to 22.2%.Link (submitted by Will)
How much profit will Northern Rock and Bradford & Bingley make for the taxpayer?
UK Financial Investments, which looks after the bailed-out banks on behalf of taxpayers, has produced the first real analysis on how much money might be made on Northern Rock and Bradford & Bingley. It reckons that the "wholly owned" businesses will bring in between £95bn and £97bn – at least £33bn more than was put in.
As always there is a snag. It could take another 15 years for those sums of money to flow back to the exchequer.Link (submitted by Will)
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