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Bank bail out has cost taxpayer £850bn so far

The bail out of the banking sector has cost the British public a total of £850bn so far, according to figures from the National Audit Office.

The watchdog says that the Treasury was “justified” in propping up the troubled sector to protect the wider financial system and that the final cost to the taxpayer will not be known for a number of years.

The study also revealed that the cost of financial advice to the Treasury from September 2007 will have reached £107m by April next year.

The report says that Credit Suisse could earns as much as £15.4m in fees for its crisis advice, while Deutsche Bank was also offered advisers on a contract of £200,000 a month for a year.

National Audit Office head Amyas Morse says it is difficult to imagine the scale of the consequences for both the economy and society had the banks been allowed to collapse.

He says: “As the crisis begins to subside, lessons must start to be learned. The authorities need to put formal arrangements in place to evaluate the effectiveness of the support provided to banks in order to inform future policy makers,”

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  1. Just imagine if AD + GB had paid all taxpayers the sum of £1M instead.

    We could have settled all our loans. Retired in comfort and not relied on government benefits. Made room for younger jobseekers by retiring. Spend money on goods to help industry etc.

    And we would all be smiling and re-elected GB and cohort.

    Inovative thinking I know and not Labour thinking.

    It would have been cheaper in the long run.

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