UK Daily Mail
Monday, Jan 5, 2008
Gordon Brown and Alistair Darling signalled yesterday that billions more taxpayers’ pounds may be spent on easing the credit squeeze.
It is the latest indication that the Government’s ¬£37billion bail-out has failed to kickstart lending.
The Prime Minister and the Chancellor both said that another direct cash injection was not their first option, but they did not rule one out.
Instead they are thought to be figuring out a multi-billion insurance scheme in which the Treasury would take on some of the risk of debts.
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Banks would pay a fee to reduce the potential losses they would face on lending to companies and also possibly to households.
The Prime Minister insisted yesterday that banks should be lending even more than they did in Labour’s boom years. He said he was ‘urgently’ talking to the banks about how to get them to start lending again.
Opposition MPs are sure to seize on further schemes that use public money as evidence that the bail-out has been an enormously expensive failure.
This article was posted: Monday, January 5, 2009 at 5:01 am