When I was a lonely Parliamentary voice saying do not nationalise big banks because the taxpayer could lose too much money, the government told us they would make money on the transaction. I said lend them as little as you could get away with for as much security as possible and make them cut costs and raise capital.
Now we learn the Treasury thinks the two they bought could lose £77,000,000,000. That’s twice the annual defence budget, more than the education budget. That money would be lost by us, taxpayers, as we own a majority of the shares of the banks that might lose it.
That’s money we cannot afford to lose. With a deficit like the present government one, the last thing we need is banking losses on top. What a disaster if they lose anything like that much. The banks should be made to cut costs and sort their businesses out more quickly to stop that happening.