EU Surrender-monkeys to scupper Clown's plan?

amcluesent

Banks in bail-out scheme cannot pay dividends for five years under EU law

The European Commission has ruled that the bailout can only proceed if dividends are banned until the preference shares are repaid. The issue is crucial as banks need to pay dividends to attract private investors. Pension funds rely on the payment of dividends for returns.

The banks are now in urgent discussions with the Treasury to renegotiate the terms of the bailout. There are fears that the European stipulation could lead to the collapse of the Lloyds TSB-HBOS merger.

Clown's wheeze collapsing would make FTSE at 3000 more than likely.

FACT! The cheese-eaters will do everything they can to punish England for not joining their single-currency.

chopperharris

I am sure theres also some more restrictive practises regarding state owned banks that have still to be questioned , assuming of course that nationisation is secured.

I seem to remember that the eu laws are pretty strict on what a bank can or cant do in this situation.

I do agree though that the whole reason for this is to prevent the wrong people gaining control of eu banks.Whether they be a hostile nation , terrorist , or anyone at all other than govtplc.

I also agree with the question doing the rounds that the government is applying restricitve anti competition practices by not allowing divis , and by doing that it is effectively preventing profit from anyone other than the state themselves , this effectively keeping the share price down rather than helping it go up.

If it was just a matter of refinancing then so be it , but this is profiteering ransom masked as nationalisation....back door share dealing which is damn near insider trading....which is legalised.