British banks have lent large sums to Dubai:
British banks are more exposed than most to the United Arab Emirates, of which Dubai is the economy built on sand, or rather excessive debt. According to the authoritative statistics of the Bank for International Settlements, UK banks have lent around $50bn to the UAE, more than 40% of all bank lending to the UAE.
Is there any investment these banks have made that isn’t dodgy? And are we going to have to prop them up with yet more public money? Wouldn’t it be better to cut our losses and say no more public money to dodgy banks who do dodgy deals with dodgy foreign institutions?