Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain’s gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations.
via Revealed: why Gordon Brown sold Britain’s gold at a knock-down price – Telegraph Blogs. My review of Gold Wars is here. I would not be at all surprised if the thrust of the Telegraph’s article is correct.
What a mess.
Tags: Bailout, Banks, Gold, Gordon Brown, Money