Eddy T

Northern Rock was the largest mortgage lender in the UK and has license to operate as a retail bank.Two years ago there was a run on it. The Bank of England as its lender of the last resort lent it billion of pounds to pay all its depositors in full. The then Labour government nationalised it.

1) Bank of England holds fiscal and monetary policies and interest rate at 0.5pc.

2) Government wants to reduce the budget deficit.Tell banks to lend more to small business.

Banks must offer a higher and competitive interest rates and less risky growth funds for their savers,investors and borrowers. In order to do all that, banks must not be broken up. Their retail banking part need their investment arm to create less risky,profitable and 'arms lengths' Growth Funds in order to pay higher interest rates and dividends to their savings customers and investors.

Top British banks which have a highly profitable investment arm, BarCap is a good example.

What do you think? Thanks.

Barclays staff sold to their saving account customers under their investment product, Aviva Global Income Fund(AGIF) in 2007. The investment was a highly profitable investment at that time.

When the sub-prime mortgage crisis erupted and Lehman Bros collapsed, global stock markets crashed. Investment products of investment banks and Lehmans bonds became zero worth.

Barclays' investment,(AGIF) dropped 40pc.

Barclays' savers with AGIF complained that they were mislead by Barclays' staff to buy that investment. They complained to Financial Mail and to their MPs.

Financial Ombudsman intervene and persuade Barcaly's management to compensate their thousand of savers affected by the losses of their investments.

Barclays top management and bosses did in-dept studies of their customers complaints. Took some time to finally decided to compensate all their thousands of savers affected by that investment.

They also apologise to their customers and assured that they will continue with the high standards demanded by those customers.They also apologised to the Financial Mail.

The Financial Mail still come out with this report for three days. If they are concerned with their marketing and their business, they should also consider Barclays values which is to maintain good bankers and customers relations.And close relations with their stakeholders.

warns the Bank of England and urged its banks to build up their reserves.

1) How much had the government spent to take stakes in nationalised Northern Rock, 84% stake in RBS and 40% in Lloyds.

2) Are these investments viable

3) Can these investments be sold in the open market or can the Bank of England help ?

1) They had ignored those accepted banking rules of the Bank of England when they nationalised Northern Rock and took 84 % stakes in RBS and also had ignored the mergers and acquisitions requirements of the Securities and Audit Commissions when they merged HBOS a insolvent bank into Lloyds, a profitable British bank with a few centuries' old history. When that mergers were finalised Lloyds share price dropped 40% to 61p two years ago and now still hobbling at that price.

2) Why does the government still wants to ignore those rules and regulations set up by the Bank of England for British banks to be incorporated and obtained their banking licences. Barclays was incorporated more than three hundreds years ago. HSBC was incorporated in Hong Kong,China in 1864.

3) Now election is to be held by 6th June.

If it still stay in power after the coming election, it will need to issue another 190 billion pounds of gilts, without the support of Bank of England next year. With a total of 415 billion pounds of budget deficit, the country will certainly lose it AAA rating and will fall into a worst recession which Britain has never experience before.

All voters must realised that the country status as a developed status is at stake.

What will happen to the value of the pound, inflation and employment.Your pensions and benefits. All the efforts and hard works of the older generations to provide education and care for their children and old age will be gone with the wind.

All voters must not be blind to see that the Labour government tatics is nothing more than to still up your emotions against bankers. Not all bankers are to be blamed. It is the government's bankers at Northern Rock and RBS and the government investment arm that are to be blamed.

When two years ago the Treasury asked the Bank of England to lower interest rate to 0.5%. Brown created the FSA and ordered all banks chiefs to his residence one morning to ask them to lend to each other, to the mortgage industry and to the small and medium Enterprises.

to do an audit on them?

The Central bank is the authority and the issuer of licences to all banks to be incorporated.

It is also the bankers bank and acts a lender of the last resort.

After issuing licences to banks, it can also withdraw them if it finds that a bank had contravene the terms and conditions of the license.

Need further discussions at the G20 meeting in Soul, Korea in the coming months.

Before it is pass into law.

He even called bank bonus "obscene".We want our money back and we're going to get it. He looks like a madman

Those are taxpayers money: also banks and bankers corporate and income tax money.They are also taxpayers and had voted for you. Don't be mad with them.

UK banks would also need to pay more than 900 million pounds a year. Have their writedowns from the US sub prime mortgage crisis and their involvement in those Lemens structured bonds and

those bad US stock market traders not enough to pay back your bailed out money.

Please be resonable and sensible.

This was my resolved question. Now I wish to apologise to my best answer, Wiseguy for not rating his answer with five stars. His answer,Because the British government owned by bankers. He is right I had missed his point. We all should be grateful to those innovative bankers and banks everywhere. In good time they are high corporate and income taxpayers.in addition they provide, help with financing to organisations, companies and individuals and all sectors of the economy to make profits, buy homes and enable the people to be employed and become taxpayers also. The economy to achieve sustainable growth. They are also voters to vote in governments.For doings all these they are being blanded as pariahs and should not be paid a reasonable pay and bonus( of course not those exorbitant pay and bonuses of the past investment banks) Now Obama is introducing a new tax on all American banks. I think he is right when he said that awarding him the nobel price was a mistake.

1) After Bank of England had lend it money to pay all depositors in full.

2) Lower interest rate to 0.5% and raised banks' Tier 1 Capital ratio

3) Ask banks in the country to lend to each other and even summoned banks'chiefs to 10 Downing Street.

4)Take 83% control of RBS

5) Made the pound weak against other major currencies

6)RBS CEO Stephen Hester : Bank will take 10 years to fix the battered banking system. Who is responsible for this poor situation which would take a decade to fix

7)Why is the Treasury announcing his 9.7 million pounds pay and bonus package only this February.

1) RBS & Lloyds had paid back the government bailed out money.

2) All banks were required to increase their Tier 1 capital ratio and forced to lend to each other.

3) The Bank of England lowered interest rate to 0.5% so that banks can lend to the mortgage and small scale enterprise with low interest rate.

What are your thoughts.

4) Force profitable banks to change their pay and bonus cultures.

5) Imposed a one time 50% tax on bankers bonuses.Impose a special Tobin tax on banking transections on all traders.

Despite that all banks in the city had signed with the Treasury on the banks' bonus reforms.

The government had gone against the G20 bonus reform spirit and global consensus on bonuses.

That plan by the chancellor to levy an immediate 50 percent super tax on banks' bonus may be against international regulations and taxation.

Brown's agreement with the French President, Sarkozy is also adding salt to the whole situation. Especially Sarkozy has yet to make a final announcement on the new levy.

My guess

the government wants to stabilise the banking system.

Do not want to harm the financial sector so that London would not lose it competitive edge

To help bankers out of the credit crisis.

What I do not understand is

To change RBS and other bankers pay culture

Why must profitable banks with strong reserves needs to rebuilt their own capital position

My guess again is

They will create bubbles in the financial sector

The banks regulators will again be blamed for not doing their duties as effective regulators

What are your thoughts.

and operated with full commercial freedom like Hong Kong and Singapore

Here is my guess:

The authority do not veto RBS bonus

The Treasury collects huge corporate and income taxes from those banks and bankers doing their busines of high banking,financing and investment banking.

Allow fat cats to plow the streets of London rather than they plowing the cities of the world.

Able to see bubble forming in London itself and not sure when and where financial bubble will form in any part of the world.

Rather than to appease EU concerns over State aid.

Can the Treasury sell it for them without the consent of the CEO and Board of RBS.