UK banks are still receiving an implicit subsidy of £5.8bn a year according to a report produced by the NEF. The subsidy is often referred to as the ‘too big to fail’ subsidy which effectively provides free state-backed insurance against bankruptcy for the major banks. This enables banks to take risks (and rewards) that are not open to companies operating in regular markets.
A link to the story and full report is here: http://neweconomics.org/2016/02/our-friends-in-the-city/?lost=true&_sf_s=+++++5.8bn+taxpayer+bonus+for+the+uks+big+banks
Leave a Reply
You must be logged in to post a comment.