The Business Secretary, Peter Mandelson, has told senior colleagues that he backs plans for a state-run investment bank that would use public funds and private capital to back small business and large-scale UK infrastructure projects.
The new bank would be modelled on the KfW Bank in Germany, which provides funding for banks to loan to small businesses as well as capital for major projects. Normally operating banks across the continent use KfW as a source of cheap finance available to it because of its guarantee from the German government.
On September 15, 2008, KfW transferred €300 million ($425 million) to Lehman Brothers Holdings on the same day that Lehman filed for bankruptcy, a step that earned the bank an unflattering moniker of \”Germany\’s dumbest bank\” in the media.
Yes, that\’s correct, Peter Mandelson intends to give more of your and my money to idiots to piss away.
This is also fun:
The model is based on the German KFW banking group, which Lord Mandelson, the business secretary, has taken a keen interest in. Last year he met officials from the bank in London and during a recent visit to Berlin spent more than an hour with senior executives, asking for detailed explanations on how the bank worked supporting Germany\’s economic priorities.
A whole hour of the Magister\’s time! We are blessed, blessed!