The Government will do "anything it takes" to prevent the financial system collapsing, including taking more than 50 per cent stakes in banks, sources said.The radical proposals go significantly further than Gordon Brown's original bail-out unveiled last week. It will spark suspicions that the Prime Minister may have to take more drastic action, even going so far as to nationalise the entire banking system.The development came after the Group of Seven (G7) leading finance ministers pledged to follow Britain's lead and part-nationalise vast sections of the Western banking system in their latest effort to bring the crisis to a close.At their summit in Washington the G7 promised to buy shares in struggling banks if necessary in the coming months. With shares in major markets plunging by a fifth last week, ministers hope that the commitment will boost confidence in the coming week.
The Government will do "anything it takes" to prevent the financial system collapsing, including taking more than 50 per cent stakes in banks, sources said.
The radical proposals go significantly further than Gordon Brown's original bail-out unveiled last week. It will spark suspicions that the Prime Minister may have to take more drastic action, even going so far as to nationalise the entire banking system.
The development came after the Group of Seven (G7) leading finance ministers pledged to follow Britain's lead and part-nationalise vast sections of the Western banking system in their latest effort to bring the crisis to a close.
At their summit in Washington the G7 promised to buy shares in struggling banks if necessary in the coming months. With shares in major markets plunging by a fifth last week, ministers hope that the commitment will boost confidence in the coming week.
Nationalisation fears
The Telegraph is part of the problem and not part of the solution, by making nationalisation sound like a problem.
Hmmm.... maybe they should be taken over by the government as well? In the long run, we're all dead. John Maynard Keynes
