Bloomberg is reporting Royal Bank of Scotland, HBOS Set to Be Taken Over by Government.
U.K. Prime Minister Gordon Brown’s government is set to buy majority stakes in Royal Bank of Scotland Group Plc and HBOS Plc to contain the worst financial crisis since the 1930s, two people familiar with the matter said.
The government will also name representatives to the boards of RBS, Britain’s fourth-biggest bank, and HBOS, its largest mortgage lender, and will work closely with the management on issues including executive pay, the people said. They spoke on condition of anonymity because the information is confidential.
“The most precious asset of all is confidence and it’s something that’s been lost in recent weeks,” Brown told reporters in Paris yesterday. It is “something that we will restore through coordinated intervention.”
Global coordinated intervention does not inspire confidence in my opinion, nor does suspension of mark to market accounting, nor does squandering $700 billion in taxpayer money.
Mike “Mish” Shedlock
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