Given that no one is buying banking shares at the moment it is almost inevitable that the government will end up buying the whole lot, giving it a 50% stakeholding in one of Britain's leading banks. So the Queen's bankers will effectively be nationalised.
Robert Peston predicted on Friday on his blog yesterday that RBS would probably be the first to take advantage of the
Nationalisation is no longer the 'N' word which is used to be. And once it has been done once, it will be easy to do it again and again. So, tomorrow it will be RBS. The markets, far from seeing this as a stabilisation move, will then be searching for the next candidate. There is a real risk of much of the banking system ending up in the public sector by the end of the month.
Does anyone really believe the government will be any better at running banks than it was running the railways? But what is the alternative? Answers on a postcard to the usual address...