Abbey, HBOS, RBS, Barclays, Lloyds TSB: all signed for £50 million bailout

Alistair Darling the UK Chancellor announced today details of the much anticipated part-nationalisation plan with £50 billion of British taxpayers’ money, the deal is a drastic new measure to win back consumer confidence in Britain’s high street banks. The Bank of England has also announced that under a Special Liquidity Scheme they will make a further £200 billion available and more if needed.

The Chancellor of the Exchequer has said he will make sure that banks have enough money to run their day-to-day business activities. This will kick-start the frozen credit markets and reassure customers that the banks are safe.

Royal Bank of Scotland, HBOS, HSBC, Barclays, Abbey, Lloyds TSB, Standard Chartered and Nationwide Building Society have all signed up for the up to £50 billion of additional financing in exchange for the taxpayer taking permanent internet shares (PIBS), ordinary shares or preference shares.

Mr Darling said this morning, “its important the tax payer gets some upside” and that he believes the £50 billion will go a long way and he will do whatever it takes to build up the bank’s capital again, “It’s not all we’re doing but it’s an important step forward”.

In London the FTSE 100 opened 114 points down, Lloyds and RSB both rose, after the horrific day yesterday for British Banks where Lloyds TSB fell 13 percent. RBS slumped 39 percent and HBOS crashed down a staggering 42 percent.

Read the full article: timesonline