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editorial vault |
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The Bank of England Settlement |
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Uploaded on Wednesday 5 November, 2014 to the money trust |
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The Bank of England Act of 1946 and the nationalisation of the BoE |
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The Bank of England was taken into public ownership in 1946 pursuant to the Bank of England Act of 1946, which provided for the transfer of the whole of the bank's capital stock of £14,553,000 to HM Treasury. The former shareholders of the bank received all of their money back from the Treasury, and were compensated with the allocation of an additional 3% Treasury stock from the government. To this day, the UK government is still only 97% sovereign over its assets, for the Government stock could have been redeemed in 1966, twenty years after the agreement was forged, but this has not happened. The UK was financially insolvent by the close of World War Two and did not possess the means to settle outstanding debts owed to the Bank of England, hence this reality today. |
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