British taxpayers stand to make a £5bn profit from insuring the toxic assets of RBS and Lloyds, despite not yet having paid a penny.
In its first annual report published yesterday, the Asset Protection Agency (APA) said it was now confident that it would be profitable for taxpayers who have not yet been called upon to put up a penny, the Daily Telegraph reports.
The accounts also reveal that Royal Bank of Scotland continues to pay large fees to the state for insuring its losses.
Stephan Wilcke, chief executive of the APA, said he was "90pc certain" that the Asset Protection Scheme (APS) he is responsible for would make a profit of at least £5bn, and possibly as much as £6bn. FULL STORY
One of the Bank of England's most senior officials has delivered a dire economic prediction of low growth, soaring unemployment and high inflation, the Daily Mail reports.
Spencer Dale, the Bank's chief economist, spoke out as some of Britain's biggest companies sounded the alarm that consumer confidence is falling.
Stoking the prospect of a double-dip recession, he warned yesterday that demand in the economy would be ‘incredibly anaemic' for up to ‘five years' and that the economy would not return to normal ‘for an awfully long time'.
Mr Dale said Chancellor George Osborne's VAT hike in the Budget, which kicks in next January, will keep inflation higher for longer. He predicted it will not return to the Government's target of 2 per cent before the end of next year - 12 months later than had been forecast. FULL STORY
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