"High Street banks have told Alistair Darling they will not pass on any further interest rate cuts to consumers and businesses.
The banks have warned the chancellor they are “not charities”. They said they could not afford further to reduce mortgage payments and interest rates to businesses if, as expected, the Bank of England continued to cut rates as the economy fell deeper into recession.
The tough line from the banks will anger taxpayers, coming just a month after the government injected £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB to protect them from the credit crunch. Northern Rock and Bradford & Bingley have already been rescued by the taxpayer.
Most main banks have responded to the 1.5 percentage point cut made by the Bank of England on Thursday. The only two big lenders not to have trimmed their rates are HSBC and Barclays, which both avoided the Treasury-backed bailout."
Thats interesting really as i thought that they were charities as they didnt mind taking the 37 billion that has been so generously donated by taxpayers .
I didnt choose to give taxes to bankers.I had NO say in the matter.
They are not charities but half nationalised institutions that have taken money to recapitalise themselves that was free courtesy of the Bank of England who charged the government 37 billion and the taxpayer foots the bill.The tax payers launder the cash because money has to come from within the system somewhere and not out of thin air straight from the bank of England.
Have Alistair Darling and Gordon Brown addressed the issue of fractional reserve lending that is part of the problem with banking ??
If not then WHY not ?
Surely it makes sense to do this instead of just throwing them more money to play with ?
They need regulating because its clear that they are not capable of doing this independently but if the government do it at all they will make a mess of it so WHY dont they listen to economists then if Gordon Brown isnt up to it ?
This government is like a chimps tea party.