Alistair Darling admitted UK taxpayers may have to buy toxic assets from Britain’s banks to help stimulate lending, adding a “bad bank” scheme to the government’s existing plans to insure banks against unexpected losses.
From the Financial Times:
Alistair Darling admitted UK taxpayers may have to buy toxic assets from Britain’s banks to help stimulate lending, adding a “bad bank” scheme to the government’s existing plans to insure banks against unexpected losses.
The UK chancellor said the bad bank approach might be necessary with “one or two institutions” in order to remove problematic old loans from banks’ balance sheets rather than simply insuring them, to give them confidence to start lending again.
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