Big risks for the insurer of last resort

FT journalist Martin Wolfe takes the same view as us of the government’s bank insurance scheme. He writes…

“The UK government looks increasingly like a python that has swallowed a hippopotamus. In acting as insurer of last resort to the British-based banking system, it is taking on huge risks on behalf of taxpayers. If this turned out to be a global depression, with huge losses for British-based banks, fiscal solvency might even come into question. Can this make sense? I doubt it.”

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