Business | Markets

Britain unveils major bank rescue plan

Britain's finance minister Alistair Darling unveiled a 50b pound rescue package for the banking system on Wednesday, which includes a major injection of capital into banks.

  • Agencies
  • Published: 08:43 October 8, 2008
  • Gulf News

London: Britain's finance minister Alistair Darling unveiled a £50b rescue package for the banking system on Wednesday, which includes a major injection of capital into banks.

Finance Minister Alistair Darling said in a statement the plan would:

  • offer banks short-term liquidity
  • make new capital available to banks
  • give the banking system enough funds to maintain lending in the medium-term.

The decision follows days of crippling pressure on high street banks, some of which have lost nearly half their value on the stock market amid investor fears they could collapse if they are not handed a multi-billion-pound liquidity lifeline.

Darling and Prime Minister Gordon Brown will hold a press conference later on Wednesday in which Brown is expected to say bold and far-reaching action is needed to tackle the global financial crisis.

The European Commission, which must approve state support programmes, said it had been informed of the plan and would make a decision quickly once it had details.

Darling and British Prime Minister Gordon Brown met the heads of the Bank of England and Financial Services Authority (FSA) on Tuesday for what the government said were talks on stabilising the banking system.

"We have been working closely with the governor of the Bank of England, the FSA and the financial institutions to put the banks on a longer-term sound footing," Darling said in a televised statement following that meeting.

It was unclear whether Britain's rescue plan, which follows the US decision to provide more than $700 billion in a bailout of banks and financial institutions, would be enough to restore market confidence following days of near panic.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

Related Articles

  1. How low can the markets go?

    How low can the markets go?

    How low can the markets go?

  2. Another day of decline in UAE

    Another day of decline in UAE

    UAE real estate and banking see another day of decline

  3. Market watchers counsel caution amid global slide

    Market watchers counsel caution amid global slide

  4. Russia unveils package to help Iceland

    Russia unveils package to help Iceland

  5. Asian stocks fall on economy concern

    Asian stocks fall on economy concern

    Asian stocks slump amid concern that economies may fall into recession

  6. Credit crisis, recession fear sink Wall St

    Credit crisis, recession fear sink Wall Street

  7. Dubai stocks decline continues

    Dubai stocks decline continues

    Shaky investor confidence causes UAE market mayhem to continue

  8. Asia stocks, US index futures fall

    Asia stocks, US index futures fall as credit crisis widens

More from Markets

  1. Tackling FII volatility in Saudi stock market

  2. Gold hits new high on weak dollar

  3. Two Chinese IPOs still find favour

  4. New corporate rules to be effective from May

All articles in Markets

More from Business

Gulf News
Popular in Business
Way to go this DSF
XPRESS

Way to go this DSF

A fun-filled route to guide you to all the happening dos in town

Business Editor's choice