Darling unveils bank rescue Britain's largest banks are to be part-nationalised after the government took the momentous decision to pump tens of billions of pounds of public money into the sector to avert a banking collapse. The scheme failed to stabilise shares in the UK's biggest banks and the FTSE 100 fell another 200 points or 4.4 per cent to 4,404.32. The government is to put up to £250bn into the banking system in an effort to keep banks lending. It will also offer a guarantee to banks issuing medium term debt, which could mean backing a further £250bn of bank borrowings. But it is likely to demand dividend cuts and the end of big bonuses at the banks in return.
Britain's largest banks are to be part-nationalised after the government took the momentous decision to pump tens of billions of pounds of public money into the sector to avert a banking collapse.
The scheme failed to stabilise shares in the UK's biggest banks and the FTSE 100 fell another 200 points or 4.4 per cent to 4,404.32.
The government is to put up to £250bn into the banking system in an effort to keep banks lending. It will also offer a guarantee to banks issuing medium term debt, which could mean backing a further £250bn of bank borrowings. But it is likely to demand dividend cuts and the end of big bonuses at the banks in return.
... multiply the expected loss in shareholder equity by the dilution of the private shareholder's share in equity, and banking stocks out to be plummeting.
The measure of the success of any system is not in the equity markets, but in the credit markets. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
