Speaking on Radio 4 at lunchtime, shadow chancellor George Osborne has declared the Government’s bank rescue package to have failed due to the continued lack of lending and credit.

"A, the credit is not flowing and many small businesses and
medium businesses are struggling…and B, the rate cuts are not being
passed on in full. The Government needs to swallow its pride and accept that its bank rescue package is not working as intended.

He added that the bank bailout needed to be renegotiated:

all very well for Gordon Brown, on a regular basis now, to get on a
soap box and shout at the banks but it’s not having the intended
effect, it’s not getting credit flowing again. We need to look again at the terms of the recapitalisation, accept that it isn’t working and fix it so it does.
need a national loan guarantee scheme, so that the government is
underwriting lending, this kind of radical monetary policy is what is
needed to pull this economy out of a recession that many say will now
be the deepest in the world."

(Quotes courtesy of

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