UK bank rescue plan announced
Wednesday, 8 October 2008 22:04
The British government has announced a part-nationalisation of the country's eight main banks with a bailout worth up to £50bn.
The government said it would provide taxpayers' money to buy major stakes in the banks.
Watch this morning's news conference on the bailout plan.
London's FTSE index fell 2.8% this morning, minutes after Chancellor of the Exchequer Alistair Darling announced details of the plan.
A further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.
The banks covered under the scheme are Abbey, Barclays, HBOS, HSBC Bank, Lloyds TSB, Nationwide Building Society, Royal Bank of Scotland and Standard Chartered.
The UK Treasury Department said that after consultations with the Bank of England and the Financial Services Authority, it is bringing forward specific and comprehensive measures to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers.
Last night at Downing Street, Mr Darling, Prime Minister Gordon Brown, Bank of England Governor Mervyn King and the head of the city watchdog, the FSA, met to put the final touches to the plan.
It will involve £50bn of taxpayers' money to provide new share capital for the banks as well as a facility to provide funds for day-to-day operations.
- Nine News: Brian O'Connell, London Editor, reports on the British government's massive move today to shore up the financial system
- One News: Brian O'Connell, London Editor, reports that the British government announced details of a rescue package for its banks
- News Special 2: Watch this morning's news conference by British Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling over the UK bank rescue plan
- Six One News: Brian O'Connell, London Editor, reports that the British government pumped billions of pounds into the banking sector
- Six One News: George Lee, Economics Editor, and Brian O'Connell discuss the latest developments
- Six One News: John Hurley, Governor of the Central Bank, tells George Lee today's move by central banks should help both the markets and the real economy
- Morning Ireland: Brian O'Connell, London Editor, outlines the plan expected to be announced this morning
- Morning Ireland: Charles Goodhart of London School of Economics says the British government is putting enough capital in to make sure the banks are solvent
- Morning Ireland: Alistair Darling, Chancellor of the Exchequer, says the measures announced today will help stabilise the situation
- Morning Ireland: Brian O'Connell says there will be restrictions on pay and limits on shareholder dividends if banks decide to take money
- Morning Ireland: George Lee, Economics Editor, said the British government will take an equity stake in eight banks
- Morning Ireland: Vince Cable of the UK Liberal Democrats says this type of legislation is important and right to protect taxpayers' interests
