Monday, October 13, 2008

Britain Props Up Banks

Britain has committed more than $60 billion in taxpayer money to prop up three banks.

“The action we are taking is unprecedented but essential for all of us,” Prime Minister Gordon Brown said at a press conference in London.

The Royal Bank of Scotland announced it would seek around $34 billion to boost its capital as part of the bailout program.

The deal is likely to result in the British government acquirng an almost 60 percent ownershp position in Royal Bank of Scotland along with more than 40 percent of HBOS and Lloyds TSB, which are negotiating a merger.

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