IMF Warns U.K. Banks May Need More Capital

Discussion in 'Economics' started by ASusilovic, Jul 16, 2009.

  1. LONDON -- The U.K. may need to inject more capital into banks if the economic situation declines and loan defaults rise, the International Monetary Fund said Thursday.

    Repeating its warning that the U.K. recovery is likely to be "slow and subdued," the IMF's executive board said the priority is to repair the damage banks have suffered during the economic crisis.

    "Substantial further write-downs would result in an erosion of capital buffers and might lead to renewed doubts about the capital adequacy of individual banks," the board said in an annual assessment of the U.K. economy.
  2. just21


  3. Illum


    I wonder about the US impact. How many Europeans are pissing their tax money away on bad US debt.
  4. The U.K. is headed for an Icelandic type bust.

    I'd bet Soros is betting against the sterling now.

  5. I like this part :

    On p18 there is a handy list of the gross cost of the bailouts - broken down. Total: £904bn or 63% of GDP. A few highlights:

    Northern Rock --- £14.6bn.
    Bradford & Bingley --- £24bn
    Kaupthing Singer & Friedlaender --- £3.3bn
    Landsbanki --- £4.5bn
    Heritable --- £500m
    Dunfermline --- £1.6bn
    All bank recapitalisation --- £78.1bn
    Increase in contingent liabilities --- £777bn
    Credit Guarantee Scheme --- £250bn
    Working Capital Scheme --- £11.5bn
    Asset-Backed Securities Guarantee Scheme --- £50bn
    Asset Protection Scheme --- £466bn

    TOTAL TAXPAYER EXPOSURE: £904bn or 63% of GDP.
  6. dewton


    thats enough money to feed a billion of the world's most poor... for 3 years.