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More needs to be done to aid the financial sector

February 28, 2009 by admin  
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According to recent reports city analysts have said that despite the various measures and the billions of pounds that the government has invested in trying to assist the struggling financial sector in the UK the steps being taken do not go far enough and more needs to be done to aid the struggling sector.

Confidence in the financial sector in the UK has been diminishing, and this is despite a number o measures that have been taken by the government to get things moving again in the financial sector.

The government has ploughed billions of pounds into trying to get the financial sector back on its feet, much of which has been funded by the taxpayer. However, one official said that the measures put into place by the Prime Minister, Gordon Brown, would simply result in the ‘nationalisation’ and the establishment of a ‘bad bank’.

In total the measures that have been put into place by the government will amount to hundreds of billions of pounds, and amongst the steps being taken are government insurance of billions of pounds worth of toxic debts, a multi-billion pound injection for large corporations, a guarantee on billions of pounds worth of bundled loans, and a demand for some nationalised or partly nationalised banks to start lending more.

However, the measures have received criticism from a range of officials, and one industry expert stated: ‘One of the keys in the resolution of many banking crises is removing bad apples from the barrel – extracting the toxic assets from the banking system. This looks like a feeble excuse for not doing a proper job and makes us worry that the amounts involved are too large for the government to finance.’

Tags: bank rescue, establishment, resolution, job, financial sector, uk, bank of england, toxic assets

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