Meeting 12

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Meeting 12

• Spring Term
• Week 5 11th February 2009

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The 2nd Bailout

• Aim Limit size of the recession
• What will it do Allow banks to lend again and
  let us return to economic prosperity
• Cost gt 30 billion

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How will it succeed

• Govt guarantees toxic debt
• Allows the credit freeze to thaw
• ONLY IF BANKS START LENDING AGAIN!!!!

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Implications

• Govt stakes in banks increase
• Taxpayer ownership of Lloyds Banking Group and
  RBS
• Recession should not be as deep or long
• Re-instate confidence
• Transparency

5
What if it does not work

• Well two things can happen
• Very unlikely, as 2 will happen first
• NATIONALISATION OF BANK (S)

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Part 2

• Video Evan Davis Season
• Why Markets Go Mad??
• (from 33.22 onwards)

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Whats hot!!

• MA news
• RBS to offload aircraft arm
• Boots and DA
• Baugar into administration
• Bankers Bonuses
• Apple ITelevision
• PE deal value hits zero
• Deflation risk
• Rights issues a plenty

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VTG update
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Whats coming up next week

• Next meeting is the 25th February
• VTG Update
• Topic What has happened to all those companies
  that have been in the news recently
• Speaker

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• SEE YOU ALL IN 2 WEEKS!!
• (i.e. after Reading Week!!)