Gordon Brown in talks with RBS, Lloyds and HBOS

Prime Minister Gordon Brown revealed that he is still in talks with Royal Bank of Scotland (RBS) Lloyds TSB (LON:LLOY) and HBOS today in regards to the promise they made to the UK government that lending activity would be at 2007 levels and how they intend to resume lending and work through the global financial crisis.

Brown also said that he will be bringing forward proposals very soon, the Prime Minister also reiterated that the Bank of England had slashed the base interest rate by 1.5 percent to 3 percent to ease consumers purse strings and had expanded a small business loan scheme. Brown also added that the rate cut must flow through to small business as it has to homeowners.

With the government planning to inject huge amounts of capital (taxpayer’s money) into RBS, Lloyds TSB and HBOS, many are skeptical that it will do anything to ease the flow of credit, however Brown has said that they are closely monitoring the banks, and will be dealing with the issues that are still restricting them from lending.

Source: APGoogle