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WikiLeaks cables: Mervyn King plotted banks bailout by four cash-rich nations
The Guardian ^ | 12/13/2010 | Jill Treanor

Posted on 12/16/2010 2:14:56 PM PST by FromLori

The Bank of England governor, Mervyn King, was so concerned about the health of the world's banks in March 2008 that he plotted a secret bailout of the system using funds from cash-rich nations, according to a US embassy cable released by WikiLeaks.

Six months before the world financial crisis reached its peak, forcing taxpayers to rescue collapsing financial institutions, King told US officials in London that the UK, US, Switzerland and Japan could jointly enable a multibillion-pound cash injection into global banks, overriding the "dysfunctional" G7 nations.

The leak may allow King to claim that he – rather than Gordon Brown – was one of the brains behind the bailout of the banks, which took place in October 2008.

According to the cable, King told Robert Tuttle, the US ambassador to Britain, and the treasury deputy secretary Robert Kimitt, who was visiting London, that there needed to be a "coordinated effort to possibly recapitalise the global banking system" as well as a way to rid the banks of the toxic loans on their balance sheets.

The ambassador said in the cable, dated March 2008, that King's proposals "were not casual ideas developed in the course of a luncheon conversation. It was clear that his principal objective in the meeting was to outline his outside-the-box thinking for Kimmitt. King suggested that the US, UK, Switzerland and perhaps Japan might form a temporary new group to jointly develop an effort to bring together sources of capital to recapitalise all major banks."

(Excerpt) Read more at guardian.co.uk ...


TOPICS: Crime/Corruption; Foreign Affairs; Government; News/Current Events
KEYWORDS: 200803; 200810; bailout; bailouts; bankofengland; banks; feds; switzerland; uk

1 posted on 12/16/2010 2:15:00 PM PST by FromLori
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To: FromLori

Related

http://www.guardian.co.uk/world/us-embassy-cables-documents/146196


2 posted on 12/16/2010 2:16:01 PM PST by FromLori (FromLori)
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To: FromLori

US = Taxpayers/investors

Screwed


3 posted on 12/16/2010 2:40:37 PM PST by wolfcreek (http://www.youtube.com/watch?v=Lsd7DGqVSIc)
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To: FromLori

“that there needed to be a “coordinated effort to possibly recapitalise the global banking system” as well as a way to rid the banks of the toxic loans on their balance sheets. “

I.E. The banks lost all OUR money. Now they want us to GIVE them the money to cover for the money they lost in bad investments.

For every $1 we ‘give’ them to fix the mess, we have to borrow $3 from the same banking system.

What a deal. For them, anyway.


4 posted on 12/16/2010 2:53:10 PM PST by UCANSEE2 (Lame and ill-informed postpThey're playing an apples-and-oranges game.)
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