Pricing the bail-out

The political and regulatory fallout from the unprecedented state intervention into the financial markets over the past year shows no sign of abating. The revelation last month that the Bank of England had lent an additional £62 billion to HBOS and Royal Bank of Scotland (RBS) at the height of the financial crisis comes against a backdrop of heated debate over so-called Tobin taxes on financial transactions and expanded Financial Services Authority powers in the UK.

While the European Commission

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