I’m surprised more people didn’t pick this up, but the Guardian quietly confirmed all the rumours about cash points and BACS payments nearly not making it through the banking crisis. Here’s the story:
The Guardian has learnt that a year ago the City regulator was so concerned about customers’ fears over the soundness of RBS that withdrawals on the high street were being scrutinised hourly, as well as the activities of big business and rival banks, which were also losing confidence in the troubled bank.
The FSA was getting reports of the cash outflow from RBS’s machines every hour. It’s already been confirmed elsewhere that they came very close to not opening for business, and the Germans also came within minutes of having half the banking sector fail to open the doors and turn on the lights.
Two weeks before this moment, George “Flipper” Osborne was still pretending there was no need to intervene in the Bradford & Bingley, and that the Bank of England’s asset base of £2bn would be enough to handle anything that was needed. Two months before the banking sector’s Strangelove Day, Greasy Phil Hammond was still pretending that a stamp duty giveaway would fix everything, while pointedly not mentioning his own extensive property interests.
And who was the regulator who let this happen?
Gordon Brown.
He was also one of the idiots saying it was all hunky dory, like Darling.
In the meantime true government debt in the UK hits the trillions mark. Circa 8 trillion because its a state secret.
Nick