The BBC reports that the banks are wanting to see Woolworths be wound up, with the loss of 30,000 jobs, rather than allowing the company to be refinanced and taken over. This is apparently because the banks want to get their hands on the money sooner rather than later.
I though the government had loaned billions of pounds of tax payers money to banks in order to allow them to maintain loans to businesses and keep the economy running.
They ought to publish the names of the banks responsible for wanting to see 30,000 people lose their jobs and ask questions about how much support these banks have had from the government and tax payers.
Sadly, this is not a one off either . Radio Five had numerous calls on the subject of banks supporting businesses last week with a number of businesses people, even those running successful businesses with plenty of orders, saying that banks are withdrawing overdrafts and promised loans.
4 comments:
... and when the company is wound up Nich, I wonder if Brown will still claim that NuLabrador's policy is working?
If 'you' wanted the banks to behave in the way that best suits your political agenda rather than in the interests of continuing a profitable business then they should have been nationalised as opposed to being given loans etc.
There really is nothing wrong with private banks recouping their money by calling in the administrators sooner rather than later. After all it is THEIR money and they have to work in the best interests of their bank, employees and their shareholders. They don't have to act in the best interests of Woollies.
Is it THEIR money or OURS that re-capitalised the banks?
Thing is there is a lack of Government consistency on this - Brown intimated that this was to oil the wheels of lending when in reality it was to help the banks recapitalise the banks. Which is it? Robert Peston thinks the former.
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