Out with the new, in with the old

[Jan Klimkowski]

Here's the first dumpster full of shite heading the way of taxpayers:

Labour's great bank sell-off could cost taxpayers another £40bn

For the three new players to be spun out, taxpayers will need to put fresh funds into all three banks. The biggest injection will be into RBS, which has been earmarked to receive as much as £26bn in an intricate arrangement that could require the taxpayers' stake to rise from 70% to closer to 85% as result of participating in the government's toxic insurance scheme.

Lloyds Banking Group will need up to £7bn so that the government can maintain its stake in the group at 43% if the bank goes ahead with a plan to issue more shares, raising cash and allowing the bank to avoid buying insurance through the so-called asset protection scheme.

Northern Rock is to be loaned an extra £8bn so that it can be split in two, as sanctioned by the EU last week, and become an active mortgage lender again.

The £40bn estimate is subject to change and will be finalised once the delicate negotiations with the EU are concluded in the coming 24 hours.

Darling made no mention of the extra funds when he told the BBC's Politics Show today that the new-look banking sector would take up to four years to achieve. "I'm determined that because the taxpayer put a lot of money into stabilising the system the taxpayer is entitled to get that money back," he said.

http://www.guardian.co.uk/politics/2009/...yers-money