ATS EXCLUSIVE: UK Govt. to part nationalise banking system

After three hours of trading, the FTSE 100 has dropped 6% and continuing to free fall. My sources at Westminster have informed me the UK government could possibly nationalise part of the banking system on Wednesday.

I have been told the UK government will take stake in certain organisations and inject taxpayers money to recapitalise a bank.

The Bank of England would be responsible for restructuring the banking system and a massive interest rate could occur on Thursday.



[edit on 6-10-2008 by infinite]

Do you know that feeling on a roller-coaster? Where you're slowing going upwards at the very start, higher and higher? Where you hear the cogs clicking as the mechanism lifts you up? Then, for a brief period you're horizontal and the clicking stops.

That's how I feel all the time now. It's like I'm trapped in a moment in time just before the roller-coaster carriage starts to descend. I want that moment to resolve but I know the only way it's going to resolve is for it to drop down.

I hate the world in 2008.

[edit on 6-10-2008 by Merriman Weir]

reply to post by infinite

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Why should we believe you are credible and who are your sources?

reply to post by Merriman Weir

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It's more fun if you throw your arms up when you reach the steep dive!

We've seen this coming, but could we have really done anything about it?

Reuters has a similar line of thinking as the poster so this may have some truth in it.

click here to read the article

QUOTE FROM TODAY'S ARTICLE:

"The Financial Times said Alistair Darling was considering a taxpayer-funded recapitalisation of banks, amid signs of cross-party and central bank support for an effective part-nationalisation of the sector."

Possibly not, no. However, I think we could have been less dependent on some of the things that have lead us to position we're in. I think people, generally, are greedy and live beyond their means in the sense of wanting a bigger car, a bigger TV, bigger holidays, bigger phone. People often want new or bigger or more just for the sake of it. Whilst there's always going to be greedy, grabbing elitists (who want dragging into the street and torching), I think society, generally, has just made it easier for them to control us.

reply to post by candyfloss

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I'll vouch for Infinite - he's been around long enough for me to know him and his posting, and keep an eye on this situation.

GM FSME

reply to post by candyfloss

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Infinite has been around for a long time. I have always found the sources and stories infinite brings to the table are usually correct. This is not one of the "the sky is falling" posters on ATS.

Please keep us updated Infinte.

Obs out

Edited for shoddy spelling

[edit on 6-10-2008 by observer]

There has been a massive exodus in the UK to Irish banks and a political 100% guarantee may be given in the UK (just like Germany.) Britain cannot afford to guarantee the £3 trillion deposits - that's double our GDP output.

While the UK is an interest to watch*, Iceland is a great concerned. We've seen the mother of all runs - on a national scale - which has left Iceland in a very dangerous position. Possible economic collapse; their currency has taken major hits against the Dollar and Euro (15-25%)

[*The UK bail out plan is identical to the Swedish plan of the 1990s. Preference shares will be purchased in selected institutions because this option is the most attractive for taxpayers]

great, the irish peasant is supporting the english gentry on a global scale....ahhh sweet progress

things are getting very strange, i just haven't got a clue where we're headed. we live in very interesting times, worse luck for us, but mt grand-kids might enjoy the stories.

FTSE dives to four-year low

www.news.com.au...

Well nationalization certainly is the flavor of the moment it seems.

[edit on 6-10-2008 by mattguy404]

Statement is to be made by the UK government at 15:30 GMT to the House of Commons.

Irish Stock market has crashed again. Russian and Icelandic markets suspended (due to a market crash), Austrian Exchange was halted due to a loss of 8%.

i think this would be a better option for the taxpayer than just dumping money into the system - and put a God fearing slap on the multi million £ bonuses being paid to the asshats trying to bring down the world economies.

All the money in the world cannot save the banking-system...
for the simple reason the system is a faillure itsself....

solution:

scrapp all the morgages.( they have no market value anyway) so the tax payer has moore to spend wich is good for the economy.......en a new banking system can rice from the debris of the old one..

A friend of my ( stockman) predicted these dutch AEX lines early 2008..

AEX 450 / 420 / 403.50 / 387....
under the 387 total collapse..

The plan is said to be speeding up.

Banks have asked the Chancellor to hurry up with the recapitalisation plan.

Infinite, are they talking about an interest rate rise or cut - you didn't say in your post. The last I heard yesterday was talk of a cut bringing it down to 5%. Nationalisation should stop a run on the banks, although I must confess to having withdrawn enough cash to see me through a couple of months just in case everything goes base over apex.

Cheers

Whoever leaked this should be prosecuted. If a tinfoil forum can know this beforehand we have serious corruption in government. Even in absence of the ability to short financials at the LSE, there are many avenues to profit with this info (anticipating equity dilution) at the expense of the small investor that HAVE been exploited - todays charts speak for themselves.

I doubt this (being a government leak according to the OP's PRE-edited post) is in anyway prosecutable (like insider trading) but this is pretty sick, your source should be ashamed of themself.

Wonder if this post gets past the mods? Doubt it...

Govt. is set to announce rescue package.



BBC (breaking)

I believe the injection of capital into banks will include taking equity, but we will find out soon.

reply to post by Mayacara

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Interest rates are expected to come down to 4.50% on Thursday and possibly near 3% by the end of the year.

Your bank account is protected up to £50,000 and £100,000 for a joint account.