Banks should not accept the Government’s Money

The Bank of England has announced details of a £50bn plan to help prevent the credit crisis causing more damage to the UK banking system and economy.

Banks will be able to swap potentially risky mortgage debts for secure government bonds to enable them to operate during the credit squeeze.

Leaving aside whether or not the £50bn should be on offer and that it's our money anyway, there is a very good reason why the banks shouldn't accept this money and shareholders should sort it out themselves – the next time banks are making a tidy sum and announcing huge profits the Government will have a legitimate excuse to impose windfall or other capricious taxes. No doubt they will then waste the money on some useless pet projects