UK mulls plan for ‘bad bank’ to hold stakes in bailed-out firms

A man walks past a closed down shop in London, Britain. The UK's economy has suffered a two per cent fall, its worst decline since the 2008 financial crash. EPA-EFE/ANDY RAIN

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The British government is considering a plan for a “bad bank” that would hold stakes in bailed-out businesses that many fear could fail during the COVID-19 crisis, the Sunday Times newspaper reported.

The plans are at an early stage and range from creating an “asset resolution” scheme to recoup value for taxpayers, to a sovereign wealth fund, the newspaper said.

Via Reuters/The Sunday Times

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