Snail like King has copied Bernankes cash for crap scheme of a few years ago in an attempt to kick start growth in the UK.
Well that is the stated intention. The reality is somewhat different.
As we saw in the USA it did nothing but provide the banks with cash for bonuses. And it will do the same for the UK banks.
Here is fintagleaks conference call hack:
King: HSBarclays, it is Mervyn King here.
HSBarclays: Good to talk again. Onto business, then. Will you please take this portfolio of non performing debt which we have in our books at a 2006 valuation?
King: Yes, I will look after that and will swap back in 18 months when the valuation is back at 2006 levels. Here are some crisp new notes in exchange.
HSBarclays: We have hungry bankers who need bonuses and others who have worthless options and so giving us this cash will enhance our stock price and make us all happy. We promise to spend it well and of course give it to small businesses via our Private Equity mates who are in dire need of finance.
King: Given I am unemployed very soon, I trust my Chairmanship seat is nice and warm; including those Wimbledon debentures of course.
HSBarclays: Indeed. A win-win then. We trust this hasn't been minuted and is not in breach of the UK Bribery and Corruption act as its an off the record Cameron-Brooks banter.
King: It is also a win for my boy George who needs to get votes for the next election.
Bankers. At it again while the world gets distracted by the Germany / PIG spat. Scum.
Snail alert (cityam)
ECB ready to spend other peoples money (bbc)
Red wine merchants follow subprime sandwich model (dailymail)
Paul Sinclair nice guy calls it quits (bloomberg)
Answers on a postcard please ...
Or tweet me @fintag ...
Bank of England to borrow the money from the ECB.