Darling still trying to rein in the banks

August 4th, 2009 by admin | Filed under Daily News, UK Bank Accounts, UK Banks, World Banks.

banking With the G20 summit due to be held in Pittsburgh next month looming, Chancellor Alistair Darling looks like being left with some egg on his chin/ And who is to blame?
Why these naughty bankers RBS and Lloyds who have caused Darling to missing his preliminary deadline for signing insurance deals worth £585 billion, which need to be waved in the faces of the other participants at the summit. Gordon Brown self claimed savior of the global banking system will lose yet under slice of his credibility if the RBS and Lloyds don’t finalise their toxic loan insurance till then.

And rumour has it that the banks are being far from cooperative and the Brown and Darling are growing increasingly have still to put pen to paper agreed under the government’s flagship asset protection scheme drawn up in March 2009.

The plan was then that the Treasury would finalise all the legal agreements before the Commons split up for its summer break, with RBS expected to insure £325 billion and Lloyds £260 billion of impaired assets and the insurance premium being paid out in undervalued bank shares.

What’s causing the stir is that officials at RBS and Lloyds are now saying that as a result of the incredible volume of due diligence on the loans, they will not be able to sign the documents until September, and, as if by coincidence, after the G20 summit has wound up.

The two banks who showed great haste in accepting the government bailout are now indicating that the complex legal documentation that accompanied each loan that is included in the scheme is incredibly complicated with each loan subject to individual scrutiny.

Treasury officials were heard to admit that they took their foot off the pedal in getting these agreements signed after the scheme was announced in March with senior officials attentions being diverted to putting out other fires during the height of the banking crisis while underlying uncertainty over the precise legal arrangements for the scheme were swept under the carpet.