Dubai debt crisis: Now British banks face fresh crisis after investing billions
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Its only 50 billion...should we worry? Or could this spark an already fragile economic crisis that will ripple world-wide?Daily Mail wrote:
By Liz Hazelton
Last updated at 4:57 PM on 27th November 2009
British banks were teetering on the brink of a fresh meltdown today after it emerged they had invested heavily in crisis-hit Dubai.
An $80billion debt default in the emirate has already reawakened the spectre of a global 'double dip' - that the first shoots of recovery could be wiped out by a second wave of recession.
But the level of exposure that the crippled British banking sector faces is now under renewed scrutiny.
The crisis was prompted by Dubai World, the development company behind three palm shaped islands as well as an off-shore replica of the globe , defaulting on its debt.
Today it emerged that:
* Royal Bank of Scotland (RBS) was Dubai World's biggest loan arranger since January 2007, according to JP Morgan
* HSBC has an estimated £9.6billion in loans and advances to UAE customers
* Barclays has an exposure of around £3billion