RBS taken over: Liverpool's stadium plans could suffer
RBS was nationalized today as part of the British government's efforts to shore up ailing banks that are unable to find investors. Sir Fred Goodwin stepped down as CEO. It is hoped capital infusion and government guarantees would lower LIBOR to allow banks to begin lending to each other. How this affects Liverpool's financing plans for a stadium or the re-financing of its buyout loan secured through RBS is unclear.
However, with governmental control, loans will be available but in reduced amounts, at higher interest rates, with heavier down payments, and less tolerance for defaulting on loans. All of this could further delay Liverpool's stadium and push up costs.