They call it Public Sector Debt

Received this from Tony Jones, who has been excellently explaining the true background behind the deficit and how it was not about Labour profligacy but about a bankers crisis that Labour as a government decided to solve by supporting the banks and the system.I believe this needs repeating and the message continually communicated to expose the Tories for many of their ideological cuts in the public services. I am sure Tony is happy for me to re-publish his e-mail.

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They Call It: Public Sector Debt

We Call IT: The Cost Of Bailing Out The Banks

They call it “Public Sector Debt”. In reality, it was the cost of bailing out the private sector banks that put us in this mess.



And here’s the money the government then paid to the banks to sort it out:

· £850bn bailing out banks… and £107.1m on financial advice

· £76bn To purchase shares in RBS and Lloyds Banking Group

· £200bn Indemnify Bank of England against losses incurred in providing over £200bn of liquidity support

· £250bn Guarantee wholesale borrowing by banks to strengthen liquidity in the banking system

· £40bn Provide loans and other funding to Bradford & Bingley and the Financial Services Compensation Scheme

· £280bn Agree in principle to provide insurance for selection of bank assets

· £32.9m Slaughter & May – Commercial legal advice

· £15.4m Credit Suisse – Financial advice on a range of measures, including Bank Recapitalisation and the Asset Protection Scheme

· £11.3m PricewaterhouseCoopers – Advice on APS

· £8.7m Ernst & Young – Due diligence on APS, Northern Rock

· £7.7m KPMG – Due diligence on APS

· £7.4m Blackrock – Valuation advice on APS

· £5.3m Deutsche Bank – Financial advice on a range of measures

· £5m Citi Financial – Advice on Aps

· £4.9m BDO Stoy Hayward – Valuation of Northern Rock

· £4.5m Goldman Sachs – Financial advice on Northern Rock

· £1.5m Morgan Stanley – Financial advice on Bradford & Bingley

· £2.5m Other advisers – Financial advice on a range of measures and proposals to revive Britain’s ailing economy

In the USA President Obama has made the banks repay their debts.



This has yet to happen in the UK – instead we are told that the Public Sector has to be cut to repay the Public Sector Debt!





Tony Jones
Regional Manager
UNISON South East