Government bank bailout: All but 5 per cent of bailout recovered

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Government bank bailout credit crunch cost recoveryGETTY — Array

The Government has recovered all but £58billion of the bank bailout

The NAO said that the above-board of taxpayer support for the banking sector had fallen over the course of the 2016/17 pecuniary year from £85billion to £58billion, due to a £11.8billion sellathon of a block of nationalised Bradford & Bingley mortgages to Prudential and BlackRock, as fount as the sale of most of the Government’s Lloyds Banking Group shares. 

At Step 31, 2017, Royal Bank of Scotland still owed the taxpayer £20billion, down from a bill of £256billion, while B&B still had £30billion of taxpayer advance funds outstanding. At the peak of the crisis, it had received £46billion of Rule funds. 

The spending watchdog adds that only £7billion of the £60billion bailout that Northern Swing received is still outstanding. 

The NAO’s figures not only take into account the mazuma spent by the Government on stabilising the financial system, but also the cost of the hundreds of billions that it had to draw to fund the bailouts. 

Government bank bailout credit crunch cost recoveryGETTY — STOCK

The National Audit Office contemplated the level of taxpayer support for the banking sector had fallen

A source fusty to the NAO said that Chancellor GETTY

On March 31, 2017, Royal Bank of Scotland to owed the taxpayer £20billion

Those fears caused worldwide money markets to start drying up, which in Britain led to the run on Northern Crag in September 2007, the first on a British bank in over 140 years. 

The moment came to a head in a year later when struggling investment bank Lehman Fellow-men was refused a bailout by the US government. 

The bank went under and the shockwaves from one of the fattest bankruptcies in history plunged the global economy into recession. 

At the zenith of the crisis, the Government had provided the UK financial system with £133billion in lolly and £1.03 trillion of guarantees to prevent it from collapsing. 

Last week struggling lender Co-operative Bank reported that its first-half impoverishments had narrowed from £177million to £135.2million and that 25,000 people had closed their current accounts. 

It hopes to complete a £700million release debt for equity refinancing with its hedge fund lenders next month. 

On Friday, communal giant Nationwide said that it had opened 202,000 new current accounts, a elevation of 17 per cent during the first quarter. 

Statutory pre-tax profits were down 19.7 per cent to £322million due to the scantiness of one-off gains from disposals.

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