OK so the bank bailout was essential but now it seems they are failing in their basic function – to provide liquidity. After receiving billions in government funds the top five banks have only managed to lend £16.8bn to small/medium companies in the first three months of 2011. (http://www.bbc.co.uk/news/business-13489884) Whilst this dwarfs the total equity raised on exchanges in some countries (for example the ‘record’ £777m raised in Warsaw) this simply shows the size of the UK’ economy not the dynamism of British banking. In perspective it is £2.2bn bellow what was targeted and required – can we expect to see this KPI failure reflected in lower bonuses – I doubt it. But what is happening in banking? We now have Moody’s threatening a downgrade if the government does not provide additional bailouts and a far from health economy (inflation, unemployment, growth) (http://www.guardian.co.uk/business/2011/may/24/uk-banks-face-ratings-downgrade-moodys)
Dr Bryan Mills
"There he goes. One of God's own prototypes. Some kind of high powered mutant never even considered for mass production. Too weird to live, and too rare to die" Hunter S Thompson describing the author in 1971.