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01-16-2009 01:20 PM #1
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Bad bank to solve UK lending crisis
In the 80s, perhaps coincidental to the release of Michael Jackson's 'Bad' album the word "Bad" took on a new meaning, which is the opposite of the literal meaning of the word amount the youth. Bad was later supplanter by wickets, buff etc. It looks like the government is bringing the word "bad" back into fashion its 80s style of actually meaning good.
It was in the news today that Ministers are considering creating a "Bad Bank" which will take on so called toxic asses of other banks, this will in turn get the banks lending to consumer again thereby kick starting the stagnant credit market.
When (if at all) the bad bank its created, you cannot open a current account there just to have a cool cheque book with the word Bad Bank written on it, the bank open for business to its naughty cousins the high street banks who has dodgy assets on its balance sheets.
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