are the banks paying off their loans?
Discussion
All these billions that the taxpayer lent - are they all paying them off as they should do? if so whats the prob with bankers bonus's? if they are paying off according to the terms the gov set then fine surely? or are they fiddling it? if they are paying them off are we making a profit?
I suspect high level banking is now a bit like Premiership footballers.
Whilst what they do looks suspiciously like what far lower paid people do, their employers seem convinced that if they don't pay their stars that much, their best talent will fly the nest.
football clubs can make their business models work (ok some can, let's skip over Crystal Palace just now)
so presumably banks can afford to pay these sums too.
Would say NatWest loose all its talent I wonder if it capped its bonus pot? or would the investment bankers just think this is still a good deal, I'll stick it out.
Would they only do it if every other bank did as well (ie fox that lost it's tail syndrome)
Who knows? any bankers one here?
Whilst what they do looks suspiciously like what far lower paid people do, their employers seem convinced that if they don't pay their stars that much, their best talent will fly the nest.
football clubs can make their business models work (ok some can, let's skip over Crystal Palace just now)
so presumably banks can afford to pay these sums too.
Would say NatWest loose all its talent I wonder if it capped its bonus pot? or would the investment bankers just think this is still a good deal, I'll stick it out.
Would they only do it if every other bank did as well (ie fox that lost it's tail syndrome)
Who knows? any bankers one here?
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
It pays back a tiny proportion of Labour's debt. A tiny fraction.
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
Cost of bank loans £80 billion
Killer2005 said:
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
Cost of bank loans £80 billion
THEY want you to think that the banks are responsible for the mess.
80,000,000,000 vs 4,800,000,000,000
Ever feel like you've been swindled?
Killer2005 said:
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
Cost of bank loans £80 billion
Have I got this right? Because the thick end of 5 trillion is a lot more than the thick end of 1 trillion which are both more than I've got in my change pot right now.
CommanderJameson said:
Have I got this right? Because the thick end of 5 trillion is a lot more than the thick end of 1 trillion which are both more than I've got in my change pot right now.
You can argue about whether the correct number is £2 trillion, £3 trillion or even £5 trillion, but is most certainly multiples of the published number (circa £1 trillion), which I think is based the outstanding Gilt nominal amount.Public sector pensions account for another £1 - £2 trillion, and then there are all PFI schemes on top (Gordon's favourite way of hiding borrowing...)!
The money given to banks recently is a mere rounding error in comparison to the other debt.
Sidicks
Edited by sidicks on Sunday 9th January 22:56
Edited by sidicks on Sunday 9th January 22:57
coyft said:
Whichever way you look at it, the taxpayer is the loser, the banks are the winners. The Government prints the money through the Bank of England, lends it to commercial banks at 0.5% interest, who in turn lend it back to the Government at 4%. Cream a few billion off for bankers bonus and hey presto they still make a profit. But don't let that get in the way of how the taxpayer should be grateful to the clever bankers for returning a profit on the Governments "investment".
Smoke and mirrors.
Oh god, not another idiot...!Smoke and mirrors.
Sidicks
sidicks said:
coyft said:
Whichever way you look at it, the taxpayer is the loser, the banks are the winners. The Government prints the money through the Bank of England, lends it to commercial banks at 0.5% interest, who in turn lend it back to the Government at 4%. Cream a few billion off for bankers bonus and hey presto they still make a profit. But don't let that get in the way of how the taxpayer should be grateful to the clever bankers for returning a profit on the Governments "investment".
Smoke and mirrors.
Oh god, not another idiot...!Smoke and mirrors.
Sidicks
coyft said:
Whichever way you look at it, the taxpayer is the loser, the banks are the winners. The Government prints the money through the Bank of England, lends it to commercial banks at 0.5% interest, who in turn lend it back to the Government at 4%. Cream a few billion off for bankers bonus and hey presto they still make a profit. But don't let that get in the way of how the taxpayer should be grateful to the clever bankers for returning a profit on the Governments "investment".
Smoke and mirrors.
Quite possibly the most ill informed and cretinous post for a while.Smoke and mirrors.
You clearly understand NOTHING about this. At all.
Try reading a newspaper that doesn't have tits in it.
Edited by Soovy on Monday 10th January 09:45
Serious question - how much money was lent to the banks? Backed up by a reliable source if possible, so that rules out the majority of the mainstream British media!
I thought that the government/tax payer had taken equity in the form of shares and preference shares and also underwritten some banks' liabilities in return for quite a handsome fee. I wasn't aware that there had been any loans made or bonds issued- in the sense of principal and interest to be repaid. Therefore any cash to be returned to the government/taxpayers will actually be made by market participants when the government sells their holdings, rather than the banks themselves.
I thought that the government/tax payer had taken equity in the form of shares and preference shares and also underwritten some banks' liabilities in return for quite a handsome fee. I wasn't aware that there had been any loans made or bonds issued- in the sense of principal and interest to be repaid. Therefore any cash to be returned to the government/taxpayers will actually be made by market participants when the government sells their holdings, rather than the banks themselves.
coyft said:
Brilliant! I see we have the usual finincial sages in the house. Let's try and keep it simple for us tit newspaper reading idiots. I'm very slow, so please only reply to the question I ask, do feel free to hurl the odd insult.
1. Who does the Bank of England buy Government Bonds from?
Don't you mean, who did the BoE buy government bonds from - as far as I'm aware, QE ended months ago? 1. Who does the Bank of England buy Government Bonds from?
Killer2005 said:
petemurphy said:
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
But, that doesn't suit the message. So you won't be hearing it.
so why the doom and gloom and cutbacks?But, that doesn't suit the message. So you won't be hearing it.
Cost of bank loans £80 billion
Soovy said:
The bailout is certain to be MASSIVELY cash positive for the taxpayer. That is to say that the taxpayer will be making billions in profit.
So,1. Remind us, why did the banks need "bailing out"?
2. If the "billions in profit" for the taxpayer are "certain", why didn't the bankers bail out the banks and pocket the billions for themselves?
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