End of QE

aelitaman

Thrugelmir wrote: »

Maybe so. It hit the wall though when it did, as retail cash deposits were withdrawn, and the wholesale money markets dried up. Rumours apparently were rife about RBS in the Far East a few days before.

If Lehmans hadn't of crashed. Then RBS could have raised money through a rights issue as Lloyds has done twice now, or shrunk its balance sheet. As Hester is now doing. To keep going.

RBS did a rights issue before it hit the wall when Fred The Shred was telling everybody that the ABM deal cost synergies were ahead of plan.

sabretoothtigger

The lloyds rights issue is extra ordinary, largest ever I think. Im not sure they could have normally done that had government not participated

The AAA rating afforded to the UK would have been torpedoed out of the water.

If companies fail it doesnt tarnish government ratings. Its only when we have some kind of fascist system where large companies are merged with government that their debt cant affect uk rating.

So the opposite is true, if banks had gone bankrupt the UK would not now be facing a ratings downgrade. As it is RBS has 1trn liabilities apparently

aelitaman

The first gilt issuance since QE stopped got of today with a 2.08 cover. But it was only for 2 billion quid about 1% of what they need to raise so I think not to many conclusions can be drawn.