TraderRob submits:
News out of London via the Financial Times has amplified the recent calls for institutional break-ups of incredible size and scope.
Not just one but all financial institutions, once protected under the "too big to fail" sheltering efforts by governments and central banks, must now find viable core business plans to move forward. The mortgage heavy British lending giant Northern Rock, British Financier Lloyd’s (LYG), and the Royal Bank of Scotland (RBS) face large divestment pressures from Tories bent on revenge and a ghostly Prime Minister Gordon Brown as England is facing debt levels near 100% of annual GDP. While the UK Government benefactor has planned a lessor degree of additional liquidity infusions into the nationalized banks and the U.S. FOMC is paring it’s purchases of Fannie Mae (FNM) and Freddie Mac (FRE) assets by $25 billion dollars, the efforts are at best a day late and a dollar short.
