BOE say's Banking Crisis Easing

purch

http://news.bbc.co.uk/1/hi/business/8119399.stm

The Bank of England says conditions in the financial system are easing, although the banking system is fragile and vulnerable to disruption.


In its Financial Stability Report, it said the total losses from the financial crisis reached $15tn (£10tn).

This bit is interesting...

Losses at major UK banks soared from £150bn to £400bn between October and December, and have outpaced bank attempts to raise additional capital of around £100bn

So still £300 yards of Capital required just to get back to normality !!!!

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Don't you just love a freshly spun article, so we are no longer falling off a cliff, but merely rolling down a steep hill. I love it how they talk in losses of trillions of dollars as being a good thing, because they estimated that it would be more. You couldn't make it up.

purch

Yep,

Total losses of £ 10,000,000,000,000

UK Banks have lost £ 400,000,000,000, and so far have only managed to raise 1/4 of that sum in fresh capital.

If the crisis is easing, then all I can say is that the crisis must have been beyond catasphrophic before then !!!!

Thrugelmir

The important part of the article is at the bottom....

Funding gap
However, the huge losses have made the banks more reluctant to lend.
The Bank of England estimates that UK banks had a "large and rising funding gap" of £800bn, half of which was backed by securitisations which will be difficult to refinance.
And they are finding it more difficult to bridge that funding gap (the difference between what they lend and the amount they get in from savers).
The Bank warns that when the emergency support it is providing expires, some banks may find it difficult to raise enough funds.
And it says the difficulty in raising money cheaply on capital markets could be made worse if the UK and other governments still have huge budget deficits, which could make the cost of borrowing more expensive for everyone.

CLAPTON

Given these shocking figures one must give BoE and the Government tremendous credit that things on the ground aren't a lot worse than they are.

Graham_Devon

CLAPTON wrote: »

Given these shocking figures one must give BoE and the Government tremendous credit that things on the ground aren't a lot worse than they are.

What? Tremendous credit for firstly not limiting this in the first place, and then secondly, saddling not only us, but our kids, and our kids kids with massive tax payments?

Thrugelmir

CLAPTON wrote: »

Given these shocking figures one must give BoE and the Government tremendous credit that things on the ground aren't a lot worse than they are.

But it was the Government that allowed us to end up in this mess in the first place!

CLAPTON

Graham_Devon wrote: »

What? Tremendous credit for firstly not limiting this in the first place, and then secondly, saddling not only us, but our kids, and our kids kids with massive tax payments?

In the first place the financial crisis was a universal banking crisis .. starting in US and then spreading throughout all of Europe and much of Asia.

Unless you take the view (common on this board it's true) that Gordon was personally responsible for the entire world mettledown then yes you can take the view that if the BoE and Government had done nothing then things would have been massively worse.
In my view they have done broadly the right things.

As far as saddling our kids and kids' kids with masive tax payments then remember we have also saddled them with unprecented wealth, health and opportunities unknown in history....

What would you have wanted to happen?.. instead of potential tax increases over the next few years, would you have preferred say unemployment to rise to 5-10million.. there would be riots and cities burning and everyone on this board would be saying how stupid of the government not to intervene.


Choices have to be made... not unthinking rhetoric about the scale of the debts but sensible practical alternatives.

Thrugelmir

CLAPTON wrote: »

In the first place the financial crisis was a universal banking crisis .. starting in US and then spreading throughout all of Europe and much of Asia.

Unless you take the view (common on this board it's true) that Gordon was personally responsible for the entire world mettledown then yes you can take the view that if the BoE and Government had done nothing then things would have been massively worse.
In my view they have done broadly the right things.

As far as saddling our kids and kids' kids with masive tax payments then remember we have also saddled them with unprecented wealth, health and opportunities unknown in history....

What would you have wanted to happen?.. instead of potential tax increases over the next few years, would you have preferred say unemployment to rise to 5-10million.. there would be riots and cities burning and everyone on this board would be saying how stupid of the government not to intervene.


Choices have to be made... not unthinking rhetoric about the scale of the debts but sensible practical alternatives.

Sorry but the political spin machine doesn't wash. Don't blame the USA for all problems. We too are masters of our destiny.

GB was chancellor during an unprecendented credit boom in the history of the UK. Totally in love with the City bankers who generated huge sums of income tax, national insurance and corporation tax for the country. So where was this money spent? All we have to show for it is a huge increase in people employed in the public sector.

I for one no longer want spin. I want real action. The cuts should start now. If you were running a business you wouldn't wait to the AGM to announce your plans. You'd be taking action now.

CLAPTON

Thrugelmir wrote: »

Sorry but the political spin machine doesn't wash. Don't blame the USA for all problems. We too are masters of our destiny.

GB was chancellor during an unprecendented credit boom in the history of the UK. Totally in love with the City bankers who generated huge sums of income tax, national insurance and corporation tax for the country. So where was this money spent? All we have to show for it is a huge increase in people employed in the public sector.

I for one no longer want spin. I want real action. The cuts should start now. If you were running a business you wouldn't wait to the AGM to announce your plans. You'd be taking action now.

It was on GB watch that it all happened and I have no doubt whatsoever he will /is blamed and will lose the next election.

He was indeed in favour of light touch regulation as were the other political parties and most of British industry. Vince did indeed warn of the bubble but not many others.

However, your suggestion of cuts right now will almost certainly lead to large increase in unemployment... .. how many more unemployed do you think is a price worth paying? Would your own unemployment for a few years be a price worth paying?

That is the choice we have.

Graham_Devon

CLAPTON wrote: »

In the first place the financial crisis was a universal banking crisis .. starting in US and then spreading throughout all of Europe and much of Asia.

Unless you take the view (common on this board it's true) that Gordon was personally responsible for the entire world mettledown then yes you can take the view that if the BoE and Government had done nothing then things would have been massively worse.

No, I don't. You have gone for the either all option of it was either a world crisis, or Gordon Brown's fault.

I don't believe it's one of the ends of the stick.

I believe we were far worse off in the outset, thanks to Gordon's policies. This was backed up by Merv only yesterday when he stated our fiscal plans were unsustainable as they were.

We could have been a LOT better prepared for this, but the current government had spent every last dime.

There is a whole lot of middle ground between "blame america" and "blame gordon".