IMF Warns Second Bailout Would 'Threaten Democracy'
TIMES ONLINE: The public will not bail out the financial services sector for a second time if another global crisis blows up in four or five years time, the managing-director of the International Monetary Fund warned this morning.

Dominique Strauss-Kahn told the CBI annual conference of business leaders that another huge call on public finances by the financial services sector would not be tolerated by the “man in the street” and could even threaten democracy.

"Most advanced economies will not accept any more [bailouts]...The political reaction will be very strong, putting some democracies at risk," he told delegates.

"I do believe that the financial sector needs to contribute both to the costs of the financial crisis and to reduce recourse to public funds in the future," he said.

Mr Strauss-Kahn said that imposing high capital ratio requirements on banks was one price the financial services sector must pay to prevent the threat of further multi-billion dollar bailouts.

He pointed to the debate in the US over the Troubled Asset Relief Programme and said that in many countries, including France and Germany, he doubted that politicians would secure the mandate needed to secure any further bail-outs if banks got in to trouble again, in several years' time.

Europe is in dispute over the spiralling cost of the global economic bailout, with Germany and France calling for a reduction in state support as their economies have shown signs of an upturn. >>> Angela Jameson and Elizabeth Judge | Monday, November 23, 2009

Public Anger Growing at 'Irresponsible' Banks
THE TELEGRAPH: Public anger over the "irresponsible" lending of Britain's banks intensified as MPs and unions criticised their conduct and even Gordon Brown felt compelled to express his anger as the latest bail-out package was announced.

Mr Brown admitted that taxpayers were justified at feeling angry that billions of pounds worth of their cash was being used to support the banks as a result of their behaviour.

As the rescue package was unveiled in the Commons, MPs from across the House condemned their excesses and called for greater constraints in future in return for the Government’s help.

Frank Dobson, a former Health Minister, said these "severe constraints" should encompass the pay and bonuses of bank bosses, adding that the measures unveiled by Alistair Darling would be acceptable to the public only if they were accompanied by "strict national and international regulation" to prevent further economic catastrophes. >>> By Rosa Prince, Political Correspondent | Monday, January 19, 2009

DAILY EXPRESS: Taxpayers Facing £1 Trillion Bill as Darling Bails Out the Banks…Again

ALISTAIR Darling unveiled another massive banking bail-out today, insisting it was “essential” to prop up the struggling economy.

The Chancellor and Prime Minister Gordon Brown staked hundreds of billions more of pounds of taxpayers’ money on a second bank bail-out in a bid to free up “blocked” credit markets and head off a worsening recession.

Among a series of measures, Mr Darling set out plans for a new insurance scheme to protect banks from so-called toxic assets, a move it is hoped will encourage institutions to restart lending to businesses and households.

It is the second bail-out for the banks in the space of just three months and could take the amount of taxpayers cash spent - or promised - to financial institutions to nearly £1trillion, or £1,000 billion. >>> By Geoff Marsh | Monday, January 19, 2009

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