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Isn’t this fun?

UK banks may have to write off £47bn of bad loans over the coming years as the economic outlook darkens, Credit Suisse has warned.

Analysts at the Swiss lender lifted their worst-case estimates for 2023-2025 from £41bn previously.

They said provisions in a severe recession would equate to 35pc of pre-tax profit for 2023.

The fun being that there are those out there shrieking that the banks must pay an extra windfall tax on all the super profits they’re making. You know, just as they meet a wave of bad loan losses?

11 thoughts on “Isn’t this fun?”

  1. Aren’t losses only able to be carried forward not backwards? So I don’t see the issue (if looked at from the perspective of the usual suspects). Banks making out like bandits, tax all their profits away! Banks making huge losses a year or two later, hard luck chaps we’ve already spent all the profits we taxed off you. If you can make any profits in the future you can use your losses against them instead (unless we change the rules to say you can’t).

  2. Or, The fun being that it’s Credit Suisse saying it. Pity it’s not a joint statement from Credit Suisse and Deutsche Bank.

  3. Jim, I believe that Trading Losses can still be carried back 1 year. Before the one-eyed bastard came to power, you could carry back 3 years

  4. “I believe that Trading Losses can still be carried back 1 year. Before the one-eyed bastard came to power, you could carry back 3 years”

    Well there you go then. If 3 years can become one year it can very easily become no years.

  5. The banks should have been allowed to go bust and the bankers responsible prosecuted for the whole 2008 Financial collapse. That it didn’t happen is part of the reason that we’re in such dire straights now.

  6. To prosecute, you need to demonstrate criminality. Being an idiot is not yet a crime (thankfully). “I don’t much care for the cut of his jib” is not a reason to lock someone up.

  7. This is what happens when you fight an economic war. If the enemy is in range, so are you. Ukraine is bleeding you dry, mate, although Zelensky’s private bank accounts look more healthy by the day. End sanctions on Russia immediately, but the forons are too vain to back down.

  8. Jim, indeed, which is why I am so distrustful of people who advise me to top up my National Insurance record…. They could just add another few years till they pay out and cancel the indexation

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