Germany and France are pressing for the use of the European Financial Stability Mechanism to spread the cost of any future bail-outs
EU Commission President Jose Manuel Barroso said eastern European countries were already getting billions in emergency rescue funds from the EU, the World Bank and other financial institutions and did not need a sweeping new bail-out
The euro dropped sharply on international money markets and if financial bail-outs
follow the one given to Ireland, it would cost British taxpayers billions.
And despite pressure from new French president Francois Hollande to ease austerity and back growth, there remains no sign that Greece's partners are prepared to relax the terms of the bail-out
"What companies such as Jaguar Land Rover and Nissan need is credit help, not unconditional bail-outs
, to prevent those companies viable in the long-term going to the wall."
But Roubini said instead of handing out money to firms that made bad bets - which could inadvertently encourage more risky behaviour if companies think they have a safety net - the government should buy up mortgages and rewrite the terms so that households are not buried in debt.To be sure, the Fed attached quite a few strings to its AIG funding deal - the loan carries a high interest rate, for example - but the central bank also followed a pattern established with Bear Stearns and repeated with Fannie and Freddie earlier this month of essentially wiping out shareholders while protecting those who held debt.Some economists warned that investors had caught on and were betting on future bail-outs
by selling stock and buying bonds in struggling firms.
The balloon-chested babe was born in hard-up Greece but settled in economicallycrippled Ireland so she knows all about requests for bail-outs
and even more about requests for baps out, although I stopped the moment she threatened a restraining order.
The London market, which tumbled 2% on Monday on worries over the potential for further bail-outs
, had stood 10 points higher at lunchtime, but it slipped back into the red in later trading, to finish down 23 points, or 0.4%, at 5,528.3.
The liabilities of the bail-outs
has been added for classification purposes, but taxpayers are not on the hook for the whole amount.
As the number of national bail-outs
of banks and finance houses piled up for approval by Brussels, the Commission's chief spokesman said the current rules were part of the solution, and had always been designed to allow for flexibility in "exceptional circumstances".
NOW that Chinese astronauts have completed a spacewalk, I think history will judge China's space programme more important than all the bank bail-outs
The onus will still be on customers to come forward and claim back their cash, and any dent in the profits of Lloyds and RBS will delay the day when the Government can sell its shares and recoup the mammoth cost of the bail-outs