A week and a savior not a slayer in Gordon Brown

Today has been very interesting, from what the BBCs Business Editor has said today, the UK government has decided Nationalisation isnt a good idea as you destroy the shareholders and the bank and thats not a good idea...so it is instead is to pump 40billion into holding up and boosting stock prices of ALL the lucky (ie not B&B) UK banks and to provide unlimited loans ... funnily the very same things that they said they were Nationalising B&B for, its share price had hit an all time low (a bit like RBS today dont you think  Stock : Royal Bank OF Scotla (RBS) Quote :  90.0  -58.1 (-39.23%) ) . 90p!!!!What they Nationalised Northern Rock for...
 
and that B&B couldnt get money in wholesale markets - RBS et. all will now have access to unlimited funding!
 
All in all B&B shareholders royally (or priministerally) screwed and something interesting is that Santander is going ahead with the A&L takeover now it has B&Bs £20billion deposits to shore up its balance book...
 
Basically had B&B been in existence with its 400million in the bank, access to unlimited loans till the interbank & wholesale market started working and an immediate share purchase from the UK government we would be looking at a very healthy bank in B&B and sky high share price. What a difference a week can make I wonder how Gordon Brown can explain his sudden urge not to nationalise the stricken RBS like he did to B&B. RBS certainly without GBs action would been insolvent in time as its shareprice means it could raise any funds through a share issue!
 


Britain poised to unveil bank rescue plan -- BBC
LONDON, Oct 7 (Reuters)
The plan is said to include provision for a stand-by facility that would
effectively ensure that no banks would be able to run out of cash, he said.
UK government under pressure to act as banks slide
LONDON, Oct 7 (Reuters) - Finance minister Alistair Darling does not want to
be rushed into rescuing Britain's ailing banking system but he may have little
choice if he is to avoid falling into the trap of doing too little too late.
"Everyone saw the Chancellor's (Darling's) statement in the house yesterday,
which was a pile of rhubarb, rhubarb. It just seemed empty after what had been
floated in the media," the source said. "This is spectacularly unhelpful."
    There is also a danger that simply boosting the capital of banks by buying
new shares will fail to address the main problem at the heart of the crisis: the
lack of trust among banks and the resulting paralysis in wholesale money
markets.
    "It looks to me in many ways like the attempt to stabilise the situation is
backfiring because what they are doing is attacking the capital issue, not the
funding issue," said Nigel Myer, banking credit analyst at Dresdner Kleinwort.
    "Liquidity is an immediate life-and-death issue, whereas capitalisation is a
long-term problem."
 Shares in Royal Bank of Scotland slumped 39 percent on Tuesday having
earlier struck a 15 year low, relegating it to Britain's fourth largest bank by
market value. HBOS plunged 41 percent to half its value under Lloyds' proposed
takeover.
UK bank rescue plan to include recapitalisation-source
         LONDON, Oct 7 (Reuters) - Britain's plan to rescue its ailing banking sector
will include "an element of recapitalisation", a government source said on
Tuesday, but he said precise details were still being worked out