Sunday, 5 October 2008

Thinking big!

Robert Peston has come up with a radical suggestion for sorting out the banks - let's take a big stake in them via Personal Accounts -

My suggestion is that the Government could lend, say, £50bn to the PADA, and it could then use that cash to buy cheap stakes in banks, to help them recapitalise, and also - perhaps - to pick up other distressed assets.

He argues that it's better to do this than let the super-wealthy hoover up the bargains there might be out there.

Fascinating idea, but I thought idea was that the fund options available in the PA scheme should be run by external managers? Not sure how this would fit in. In addition it would no doubt be attacked by the Right as creeping nationalisation. Still, at least someone is thinking big.

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