Friday, October 10, 2008

How troubled Iceland banks affected UK

I'm surprised to learn a lot of county desided to bank in with Iceland bank instead of UK, I can understand partially due to the fact that interest is higher. But it is troubling UK government as Iceland banks have now been nationalize, hence what will happen to the large amount of UK deposit? Individual saver is guarantee to a certain limit, but council deposit is not. In months to come, I'm sure the government will feel the burden, and we might hear another rescue plan...

On 8/10/08 publication report, Bank of England has a ready reserve of £50billion, and I suppose it has deducted the £50b bailout amount on UK Banks. How much more bailout can the government afford in future?

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