Toxic Debt Killing UK

UK taxpayers will be left exposed to £200bn in potential losses under the biggest Government bailout yet for Britain's banks. The Government will underwrite 'toxic' assets built up by the banks during the credit boom which are now seen as high risk. If companies and individuals default on these debts, the taxpayer will be left to foot the bill. The latest lifeline for the City - put to bank bosses late on Saturday night - came as the PM vented his fury with the banks for lending vast sums to foreign investors who are now unable to pay the money back. Treasury officials checking the books of the Royal Bank of Scotland now controlled by the Government, were shocked to discover that £2.5bn had been loaned to Russian oligarch Leonid Blavatnik in his attempt to build a massive business empire. The RBS has had to write off the entire debt because one of Mr Blavatnik's foreign companies faces going bust - with British taxpayers left to pay the price. The PM believes some banks have deliberately concealed the scale of their bad assets. Read what the experts think.