Economic comment: Devil in bank rescue details found by City economist
Despite banking stocks making gains yesterday, analysis by economist Simon Ward at asset management firm New Star suggests the issue of costs and fees attached to the UK taxpayer-funded bailout could actually stifle the intended objectives of increasing liquidity and capitalisation of the sector. Ward says the plans - at least some details of which are yet to be fully confirmed - will need to offer enough of a carrot to equity shareholders to continue to attract fresh capital from the private sector too, otherwise it could fall short of the desired outcome. ...