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'Financial crisis responsibility fee' may rob UK banks $10bn

London (Ask4paydayloan) 18 Jan, 2010 : The current proposal may prove fatal for the overall UK economy since it is battling against the onslaughts of financial crisis presently. As it was not ready for such kind of decision, the US administration has shown no mercy to already financially crippled UK banks.

One of the interesting factors, which must be taken into account is that those banks that were not dependent on US have not been affected that much as compared to the banks, which were doing good business with the US. For example, since RBS's exposure was limited, as it is 84% owned by the UK Government, it will not be affected that much as compared to the two other banks, HSBC and Barclays.

The logical conclusion from the above result is that it is better to insulate ones business affairs instead of throwing ones doors open to the foreign banks. To put it simply, it is better to realize ones own resource strength and depend on the same rather than opening the doors to other's economy.

The other important point that must be taken into consideration is that the UK Government must devise ways to combat the current crisis, which has been inflicted on the UK banks. This must be done under any circumstances, since banks need to be consolidated to make UK economy gain strength. If the White House is planning to convince the G20 lobby, the UK Government also needs to make the world understand the importance of its process of economic recovery.

This is what Obama said, justifying his decision on behalf of the American citizenry "We want our money back and we are going to get it. My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at the very firms who owe their continued existence to the American people."

As the new tax will be payable on June 30, which will be targeting the companies with more than $50 billion in assets, the sad part of the current imposition is that it will not matter whether or not companies enjoyed bailout packages in the past.

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