Socialist Worker

Alistair Darling bails out banks’ ‘toxic debts’

by Chris Bambery
Issue No. 2140

Shares on the London Stock Exchange soared on Tuesday after the news that Gordon Brown and chancellor Alastair Darling will guarantee the toxic debts of nationalised banks, such as Lloyds and the Royal Bank of Scotland, to the tune of £500 billion.

The banks will not have to pay interest on government loans in return for promises to lend to customers.

The bankers might have been celebrating this decision, but it will mean more troubles for ordinary people.

The costs of the bankers’ failures will now be carried by working people.

Bank bailouts are set to add £1.5 trillion to Britain’s national debt.

Darling has already said this will have to be paid for by tax increases and cuts in public spending.


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News
Tue 24 Feb 2009, 18:21 GMT
Issue No. 2140
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