According to George Osborne the Conservative Shadow Chancellor Bradford & Bingley should have been helped more by the government and could have opted for a solution that would not been such a huge exposure to the British Taxpayer.

In the Shadow Chancellors speech at the Conservative party conference he said: “We are bailing out the very large institutions that took a bet and lent money to Bradford & Bingley when times were good and made money out of it. He continued to say: “Now that times have turned bad and the debt has turned bad we are going to step in as taxpayers and bail them out and I don’t think that’s the right thing to do.”

Osborne was proposing for the Bank of England to facilitate Bradford & Bingley allowing it to run as a separate entity and run it down instead of nationalising the bank.

Read the full article in the citywired

Both banks are in a world of pain and most of the worlds media are not shy in letting us all know, some like ourselves have said that the U.S. Government are looking at a number of options, one that would involve them injecting cash into their books.

So if the Government was to step in and help bail out Fannie Mae and Freddie Mac, what kind of things would they be able to do. One suggesting is that the U.S. Treasury Department will offer them a form of guarantee to $1.5 trillion of their debt; however some sources have said that this could extend to $2.3 trillion.

Another popular idea is that the Treasury could offer a direct-investment for around $10 billion for each bank, according to CNN Money; this could be in the form of buying triple-A debt securities directly from their portfolios.

However this would carry a risk, as this would mean that the Government will be putting more mortgage risk on the back of taxpayers, this is an unpopular move and it would only benefit the share holders in the end.