Chancellor Alistair Darling today launched a drastic rescue of Britain's high street banks in move designed to head off a cataclysmic failure of confidence by announcing a part-nationalisation plan with £50 billion of taxpayers' money.
He said there will also be extra help from the Bank of England to ensure that the banks have enough cash to run their day-to-day activities to help reassure savers and kickstart the paralysed credit markets.
The Bank of England will make available at least £200 billion to banks under the Special Liquidity Scheme.
Seven banks and Britain's biggest building society have signed up for as much as £50 billion of additional finance from the government in exchange for the taxpayer taking preference shares, ordinary shares or permanent interest bearing shares (PIBS)
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Wednesday 8 October 2008
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