Saturday 20 January 2018

British banking is much healthier than here

George Garvey

The contrast between the response of the British and Irish governments to the international financial crisis that erupted in the autumn of 2008 couldn't have been starker.

While Ireland unconditionally guaranteed the deposits and bonds of the Irish-owned banks and hoped that the problem would somehow go away, former UK Prime Minister Gordon Brown and his Chancellor Alistair Darling went in with all guns blazing.

In the space of a few weeks the British government had pumped £76bn of fresh capital into the two weakest British banks, RBS and Lloyds, insured Stg£280bn of bad assets, guaranteed Stg£250bn of wholesale bank lending, and indemnified the Bank of England against losses of up to Stg£200bn providing liquidity to the banking system.

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