THE government will tomorrow launch the biggest rescue of Britain's high-street banks when the UK's four biggest institutions ask for a £35 billion financial lifeline. The unprecedented move will make the government the biggest shareholder in at least two banks. The Royal Bank of Scot-land (RBS), which has seen its market value fall to under £12 billion, is to ask the government to underwrite a £15 billion cash call. HBOS, which is Britain's biggest provider of mortgages, is requesting up to £10 billion. Lloyds TSB, which is in the process of acquiring HBOS, and Barclays require £7 billion and £3 billion. The scale of the fundraising could lead to trading at the London stock market being suspended. This would be to give time for the market to digest the scale of the information and its impact.
THE government will tomorrow launch the biggest rescue of Britain's high-street banks when the UK's four biggest institutions ask for a £35 billion financial lifeline.
The unprecedented move will make the government the biggest shareholder in at least two banks. The Royal Bank of Scot-land (RBS), which has seen its market value fall to under £12 billion, is to ask the government to underwrite a £15 billion cash call. HBOS, which is Britain's biggest provider of mortgages, is requesting up to £10 billion. Lloyds TSB, which is in the process of acquiring HBOS, and Barclays require £7 billion and £3 billion.
The scale of the fundraising could lead to trading at the London stock market being suspended. This would be to give time for the market to digest the scale of the information and its impact.
Gordon Brown invoked the spirit of the Blitz as he promised Britain would "lead the way" through the global financial crisis.With EU leaders preparing for an emergency summit in Paris, the Prime Minister urged the world to follow the UK's example to tackle the "extraordinary" turmoil on markets.He also echoed a warning from US President George Bush that countries must not "turn against each other" or seek isolation amid the chaos.Writing in the Sunday Mirror, Mr Brown insisted: "No country - not even the biggest - can make it just on their own at a time like this. We are all in it together and have to work to solve it together."He said he knew people were "worried", but employed language reminiscent of Churchill to praise the resilience of the British public."I've seen in the cities and towns I've visited a calm, determined British spirit; that, while this is a world financial crisis that has started from America, Britain will lead the way in pulling through."And I know that we will come together as a country and emerge a fairer and more successful nation than ever before. Together, we can win the fight for Britain's future."
Gordon Brown invoked the spirit of the Blitz as he promised Britain would "lead the way" through the global financial crisis.
With EU leaders preparing for an emergency summit in Paris, the Prime Minister urged the world to follow the UK's example to tackle the "extraordinary" turmoil on markets.
He also echoed a warning from US President George Bush that countries must not "turn against each other" or seek isolation amid the chaos.
Writing in the Sunday Mirror, Mr Brown insisted: "No country - not even the biggest - can make it just on their own at a time like this. We are all in it together and have to work to solve it together."
He said he knew people were "worried", but employed language reminiscent of Churchill to praise the resilience of the British public.
"I've seen in the cities and towns I've visited a calm, determined British spirit; that, while this is a world financial crisis that has started from America, Britain will lead the way in pulling through.
"And I know that we will come together as a country and emerge a fairer and more successful nation than ever before. Together, we can win the fight for Britain's future."
