Shouldn't the US Treasury be putting a large financial input to beleaguered UK Banks ?

Question

Hi,

The huge raft of problems our financial institutions are now in was initially caused by American companies selling mortgages to US citizens who had no hope of re-paying them

Hence banks having to borrow vast sums from each other, and now the UK Treasury, funded by UK tax-payers.

The fault for all this lies squarely wih the "sub-prime" lenders, who were not properly regulated and watched over by Federal Government, as they should of been.

Other European Countries have not seen so much of an impact, as they rightly did not link themselves so closely with the American market.

So now that our "very close allies" have done a dirty on us, it is time that the US Treasury were told to stump up the billions required to sort out their own mess.

What do you reckon ?

Bob

Answer 1

no they were greedy boys in england so we will have to pay for it and the big bonus's they will have had .we allways pay for these people

Answer 2

No, I do not think the US treasury should come to the rescue of UK banks. The UK Banks are also guilty of "sub-prime" lending in the US which is why they are feeling the fall-out from the decline in the US housing market. The banks have risk analysts in their employ who were well aware of the pitfalls of lending to less credit-worthy customers, but the risks were taken anyway. All of the banks have increased their business over the last decade or so on the back of consumer debt and it was only a matter of time before it was going to falter - this is why we have these problems now. The market will recover in time.

Answer 3

Great idea, but we both know it'll never happen...

All that will happen is that as usual they will have to do is claim they "saved your **** in WWII" and our Gvt will let them walk all over us - again

Answer 4

No.The FEB is only responsible and will only help US banks and the well being of its financial system. The bank of England responsible to help UK banks and its financial systems. Banks in the UK have to do write down on its huge losses on their investment in the sub prime mortgages. They had invested in it and the investment turned bad, so they need to write down such losses.

Originally, the mortgage related investments are classified as very good investment and they are rated as AAA ratings by Rating Agencies. However, due to mismanagements by its creator and the lack of supervisions by the relavent authorities, it become sup prime mortage and become worthless investment, called sub prime mortgage. Investors lost heavily from their investment in sub prime mortgage. This was a good and highly rated investment turned bad. Nobody is to be blamed but the unlucky investors.  

Answer 5

You are probably right, but our 'special relationship'  only ever appears to be one way - so its not a case of give and take but take and take from whoever , and that includes us. So, I think it fairly unlikely that the perpetrators will ever take responsibility for their greedy actions.