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. http://online.wsj.com/article/SB124777864393853707.html
Apparently Mcbust's tripartite deregulation led to Uk banks lending 10% of US gdp to Us consumers! http://www.spectator.co.uk/coffeehouse/5189928/the-imf-reveals-just-how-bad-it-is.thtml
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.