£850bn bill to rescue British banks

The total public sector support for Britain's banks runs to £850 billion - with the final cost of the financial rescue unlikely to be known for years, a report by the public spending watchdog has revealed. The National Audit Office (NAO) also said the cost of financial advice to the Treasury since September 2007 is expected to balloon to £107 million by next April. Credit Suisse is expected to earn up to £15.4 million in fees for emergency advice to the Government on the banking crisis, according to the NAO report. The investment bank is being paid up to £300,000-a-month to provide financial advice to the Treasury as one of a raft of consultants drafted in amid the crisis. The NAO report found the Treasury was "justified" in using unprecedented sums of taxpayer cash on bank rescue measures to protect the wider financial system. But it criticised the Treasury for hiring advisers on expensive contracts for up to a year that included undefined success fees. Credit Suisse and its fellow investment bank Deutsche Bank were brought in on contracts paying £200,000 a month each for a year - as well as a potential further £5.8 million in success fees. Credit Suisse was also hired on another contract to advise on the toxic asset protection scheme, which increased to £300,000 a month from June, with a potential £3 million success fee. Its total fees could reach £15.4 million by next April. The NAO was highly critical of the lengthy contracts and the failure to include a definition of "success", although it stressed that just under £100 million of adviser costs will be refunded, largely from part-nationalised Lloyds Banking Group and Royal Bank of Scotland in return for state support. The report also reveals little was known about the scale of the problems at Royal Bank of Scotland before it was bailed out with vast sums of taxpayer cash. The NAO discovered the Government believed RBS's capital position was "reasonably strong" just days before RBS was given covert emergency support from the Bank of England. This funding - which peaked at £36.6 billion for RBS - was only made public for the first time late last month. The NAO report confirms a mammoth £131 billion is expected in total taxpayer outlay on bank bailouts by the end of this year, including last year's Northern Rock nationalisation. The total public sector support - including borrowing guarantees and liquidity support from the Bank, as well as savings depositor protection - runs to £850 billion.(my view)-And they say people who kill people or attack us are terrorists(which they are) and so are all the governments are TERRORISTS