UK Banks could be forced to hoard Billions - FT

inspector_monkfish

UK banks face higher capital ratios

Britain’s “too-big-to-fail” banking groups could be forced to hoard billions of pounds of extra capital as an insurance against future financial crises, after Alistair Darling decided against splitting them up.

http://www.ft.com/cms/s/0/a25ef234-3374-11de-8f1b-00144feabdc0.html?nclick_check=1

reduceditem

Back to the future.

avantra

Good move in the right direction.

Maybe better savings products are on the horizon.

Californication

avantra wrote: »

Good move in the right direction.

Maybe better savings products are on the horizon.

No, the additional reserves would be on deposit with the Bank of England or in gilts. The banks can only pay for good savings rates if they can lend at higher rates.

--C

ManAtHome

Now all we need is a government somewhere in the world who'd be prepared to issue loads of gilts...

Californication

ManAtHome wrote: »

Now all we need is a government somewhere in the world who'd be prepared to issue loads of gilts...

...and they'd need to pay really high rates of interest to fund the 'good' savings products. Of course, high rates on gilts might have a downside...