Secret loans total 61.6 billion pounds
(26 November 2009 – UK) Details of the secret loans to the Royal Bank of Scotland (RBS) and HBOS received from the Bank of England, have been revealed totalling £61.6 billion (A$111 billion), during the financial crisis.
The Bank of England revealed the details of loans which were offered to the banks in 2008, in a statement that coincided with governor Mervyn King’s appearance before the Treasury Select Committee.
The central bank believed that the loans no longer need to remain a secret because there is no longer a ‘potentially systemic disturbance’ to the financial system.
The Bank of England said in a statement that now RBS has signed up for the asset protection scheme and Lloyds has embarked on its alternative strategy for capital raising, the bank judges that there is no longer a need for the assistance to remain secret.
Lloyd’s purchased HBOS in the height of the financial crisis and has been struggling ever since; the bank recently launched a cash call asking its shareholders to inject around £12 billion through a rights issue, saving the bank from having to take part in a costly government insurance scheme.
RBS also felt the sting of the crisis; the state now owns 84 percent of RBS after an substantial bailout.
RBS borrowed £36.6 billion in October 2008 and repaid the loan in December of the same year.
HBOS borrowed £25.4 billion in November 2008 and gave the cash back by January 2009.
The central bank believed that the loans no longer need to remain a secret because there is no longer a ‘potentially systemic disturbance’ to the financial system.
The Bank of England said in a statement that now RBS has signed up for the asset protection scheme and Lloyds has embarked on its alternative strategy for capital raising, the bank judges that there is no longer a need for the assistance to remain secret.
Lloyd’s purchased HBOS in the height of the financial crisis and has been struggling ever since; the bank recently launched a cash call asking its shareholders to inject around £12 billion through a rights issue, saving the bank from having to take part in a costly government insurance scheme.
RBS also felt the sting of the crisis; the state now owns 84 percent of RBS after an substantial bailout.
RBS borrowed £36.6 billion in October 2008 and repaid the loan in December of the same year.
HBOS borrowed £25.4 billion in November 2008 and gave the cash back by January 2009.
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