Bank bail out roundup

The Chancellor announces his bank bailout plan, but has no idea how much money will be needed to stave off collapse of the sector and the economy: more.

The Telegraph commentator Liam Halligan argues that the rescue has failed, that banks must fully disclose their liabilities and that losses must be written off: more.

Ambrose Evans Pritchard calls for a “Biblical debt jubilee” as possibly the only answer, recognizing that creditors will not like it: more.

John Redwood MP calls for a cut in taxpayers’ risks and receives a lucid reply suggesting that US$54.6 trillion of credit default swaps — and few know what these are[1] — will have dire consequences: more.

On ConservativeHome, Andrew Lilico argues that neither loans nor recapitalisation nor underwriting will correct matters since many activities of the sector are finished as profit-making exercises. He calls for radical restructuring. More.

And rounding off calls for radically different action, the Libertarian Alliance says simply, “Let failed banks fail”: more.

Meanwhile, David Cameron strengthens his economic team by bringing back the man who handed over a strong economy and sound public finances, Ken Clarke: more.

[1] — A credit default swap (CDS) is superficially like insurance for bonds and other credit instruments, without the need to own the thing insured. CDS enable hedging of risks and speculation on the possibility of governments, corporations and others not repaying their debts. To find out more, please see this Google search.

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