"Morgan Stanley and Dresdner Kleinwort have been left holding £2.5 billion worth of HBOS shares after the lead underwriters on the UK bank's rights issue offloaded less than 40 per cent of the stock on offer". TimesOnline

Would I be correct in thinking that these institutions have access to the Fed Discount window and the ECB equivalent? So, given they're almost certainly undercapitalised themselves, although this looks like the private sector recapitalising the banking system, it is actually being backed by the central banks.

We're creeping ever closer to the day when the Western economies have to start monetising their own debts when the Asian countries refuse to continue doing it for them, debasing their own currencies in the process. Another step on the road to hyperinflation and certainly bullish for gold and silver.