Socialist Worker

We’re still paying to prop up banks

Issue No. 2160

Gordon Brown and Alistair Darling have run up a huge debt in bailing out the Royal Bank of Scotland and Lloyds Bank.

Some £70 billion of public money has been handed over to buy the major shareholding in each bank.

That is £11 billion more than the current value of those banks on the stock exchange.

The loss might be even greater. City analysts calculating the cost to insure the bank’s toxic assets to be £25 billion.

The bailout means in effect each household in Britain owns £3,000 worth of shares in RBS and Lloyds.

Not that we will see any benefit from such investment in the banking system.

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Tue 14 Jul 2009, 18:56 BST
Issue No. 2160
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