Someone run me through this banking stuff

[Bored Of Education]

Are we paying £25 billion more to them? We get £2.5 billion back. This is supposed to attract more private investment?

I will remember that at the next budget meeting at my son's school. I will bring it up with my mates who are redundant or are about to made it.

I wonder how the victims of this feel

[Kid A]

Someone run me through this banking stuff

Link gone wrong bro.

[Banana Banana]

Someone run me through this banking stuff

You are comparing apples with pears.

The £25Bn payment is for shares in RBS, it is not a donation and it will be used to up the government's shareholding in the bank and give it more capital in order to stay solvent. Clearly there is some expectation that the money will come back when the government denationalises it.

The £2.5Bn is a payment from Lloyds for the insurance it has received already.

[Ginger Yellow]

Someone run me through this banking stuff

Well, the £25bn isn't new, although the exact structure has changed. Most of this stuff was announced (and budgeted for) in February. And the changes reduce the taxpayer's exposure to losses by £20bn in RBS's case and completely in Lloyds's case, apart from the equity stake, of course. The government is also getting paid £6bn odd by RBS, but then, the government already owns RBS.

[pebblethefish]

Someone run me through this banking stuff

Went to the pub at lunch time. Was full of HSBC staff who've just been made redundant. Yesterday it was full of Skandia Life staff who had just been told of their redundancies. RBS staff drink a bit further up the road, so I didn't see them when they lost their jobs the other week. And obviously they're all now looking for work in a sector that isn't employing.

Remember, when hating bankers, that it's only those at the top level who deserve it. The rest are normal people.

[The Exploding Vole]

Someone run me through this banking stuff

Yes. And I don't think normal people consider themselves "bankers" anyway.

[Guest]

Someone run me through this banking stuff

Chirpy wrote:

You are comparing apples with pears.

Well, I prefer apples generally, but pears make a more sophisticated dessert base. It's swings and roundabouts really.

[hobbes]

Someone run me through this banking stuff

it was full of Skandia Life staff who had just been told of their redundancies

Really?! I didn't hear anything about it.

[pebblethefish]

Someone run me through this banking stuff

All the regional offices are going, I believe.

[Bored Of Education]

Someone run me through this banking stuff

The link was to the Farepak collapse.

Remember, when hating bankers, that it's only those at the top level who deserve it. The rest are normal people

One of the redundant mates that I referred to earlier is ex-HSBC

[Tubby Isaacs]

Someone run me through this banking stuff

If compensation for Farepak lossees (is that a word?), then why not for everyone who writes in to Watchdog having been done over?

I assume (but don't understand, I admit) there's some kind of justification with banks that they are an essential part of "the system", ie the mainstream banking sector in which there has to be some kind of confidence. I don't think the distinction is between saving and other types of activity.

I didn't see though why people who'd taken a punt on Icelandic banks should get compensated.

caveat something or other.

[Ginger Yellow]

Someone run me through this banking stuff

I don't think the distinction is between saving and other types of activity.

Well, it is. Even before the crisis, retail deposits were guaranteed to a certain extent, as they are pretty much everywhere in the world. Obviously the government wants to encourage savings for a variety of reasons. But also there's the whole run-on-deposits issue. Farepak's somewhat different, of course.