Home | Topics | Royal Bank of Scotland Group

Bank of England bailed out RBS and HBOS

Printer-friendly versionPDF version

The Bank of England extended secret emergency financing to Royal Bank of Scotland and to what was then HBOS during the banking panic last October, indicating the two banks were even closer to collapse than had been thought.

From the beginning of October 2008 when Ireland guaranteed the liabilities of all its banks, HBOS needed life support, with RBS also seeking emergency lending on 8 October.

By mid-month, the emergency liquidity assistance for the two peaked at £61.6bn, indicating that insolvency would have followed had the Bank not acted. The two banks clearly could not meet their obligations.

”This was a dire emergency,” said Paul Tucker, deputy governor of the Bank, giving evidence to the Treasury Select Committee on Tuesday.

The emergency aid came at a time when both banks were already eligible for a variety of measures aimed at providing liquidity to the entire banking sector, suggesting that even those extraordinary measures were not enough to sustain either lender.

Read the article at FT!

Short URL
Asymptotix on Twitter

Are the key legislative pillars such as Basel II & III, UCITS IV and Solvency II forcing you to re-examine how you identify, measure and manage risk and capital?

Asymptotix work closely with our partners to help clients develop a more proactive, systematic and integrated approach to governance and risk management to deliver proper value.

Asymptotix can offer the support you need to deliver on time. Read more...
 

Is the goal of your website to sell services or products, educate, or collect data?

A positive customer experience is vital to conversion, no matter what your conversion goals may be. Our designers and developers will create a positive experience to maximize your conversions and deliver the optimal return on your investment. We strive to find the perfect balance between the web site’s design and functionality.

Asymptotix implements interactive solutions for European companies. From corporate websites to social communities, our clients will tell you an investment in building a scalable online experience will deliver long-term tangible benefits.

Based in Luxembourg we can help you all over Europe. Our multi-lingual team can work with projects and speak your language! Read more...