Investment banking: more proof that economy rescue money is not reaching the correct target
A report by Reuters says that GBP5,000 million has been raised from nine banks to fund Kraft's proposed buy-out of Cadbury's.
Barclays and HSBC are the banks named in the report which has not received state aid, intended for the support of the economy at large.
It is not the first large corporate deal funded since several banks were rescued by government intervention.
The USA's President Obama recently warned banks that they must trickle down the funds to ordinary taxpayers who had, indirectly and forcibly, supported the banks during the crisis.
However, the M&A landscape has produced substantial profits for merchant and investment banks some of whom have paid back all or lump sums of the funds they received, bolstered by the dramatic reduction in institutions able to handle very large deals.
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