http://www.guardian.co.uk/business/2010/oct/04/bailout-banks-likely-further-funding
This continues to be a world wide problem, that is only getting worse.
Britain's banks may soon demand a further bailout from the public purse despite £1.2tn already being put at risk to prop up the system, a leading economic thinktank warns today.
The New Economics Foundation said the government needs to do more to address the borrowing requirements of the high-street banks, which still rely on funding from the Bank of England two years after the collapse of Lehman Brothers. Many of the emergency funding schemes put in place during the crisis run out by the end of 2012, which means that banks need to find or replace £750bn of funding.
NEF calculates that the banks will need to raise £25bn a month – up from £12bn a month now – to plug the funding gap. If they cannot, they may need more help from the government to keep operating.
"We believe the public sector is likely, once again, to be asked to bail out the banks for the emerging funding gap," the foundation said
