the dirty little secret of the banking industry is that it has no intention of using the money to make new loans
This from the New York Times, but the situation is the same in the UK.
Vast amounts of money handed to the banks, claims that this will be used as “leverage” (that word again…) to make the banks restart the economy. And this doesn’t happen. Never mind that “lending at 2007 levels” is just storing up trouble for later.
Call it a Jubilee or call it an Amnesty, it’s time to clear the books and write off everyone’s debts.