The river of money is what keeps economies flowing.  That is why governments are putting all efforts into getting the banking system functioning well.  Others in need like  pensioners may well question why those rich banks seem to be first in the lineup but without the banks there is nothing.

In the UK the government has now unveiled a second bank rescue plan. 

The U.K. government unveiled a second bank rescue plan Monday designed to jumpstart lending and bolster the stability of the nation’s financial system.

The announcement made early Monday marks a dramatic new step for U.K. officials trying to contain a growing banking crisis. Under the plan, the British Treasury will set up a wide scale insurance program aimed at protecting banks against further losses and guarantee bank assets backed by mortgages and other loans.

Meanwhile in the US the government’s Troubled Asset Relief Program (TARP) needs some modification to get things back on track.

Economy is getting worse and banks’ books are still weighed down with junk. Obama will deliver a ‘message’ for Wall Street to get credit flowing, aide says.  It’s back to square one.  The deepening financial crisis, which is undermining the government’s rescue efforts, is prompting federal officials to revisit the original bailout measures. These include taking toxic assets off institutions’ balance sheets by moving them into a so-called “bad bank,” according to published reports.

One can only hope that the banks do effectively use the support they are getting.  Then at least there is one less problem for all the rest of us to worry about.

Footnote: If you are interested in books on Banks, then why not visit the Banks section of the Money Bookstore.

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