Wednesday, October 08, 2008

BBC Rescue Plan for UK Banks Unveiled

The U.S. is not the only one going through a financial crisis. Helps put a little perspective on what's happening, doesn't it?

BBC reports Rescue plan for UK banks has been unveiled...

The UK government has announced details of a rescue package for the banking system worth up to £50bn ($88bn).

It will initially make the extra capital available to eight of the UK's largest banks and building societies in return for preference shares in them.

It is "designed to put the British banking system on a sounder footing", said Prime Minister Gordon Brown.

But the FTSE 100 in London fell 5%. HBOS shares rose 26% but Barclays fell 11% and Standard Chartered dropped 13%.

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As part of the package, a further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.

Read the whole story here.

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