The UK government today release a bailout plan for the UK’s banking system. The new plan sees three of the largest UK banks HBOS, Lloyds TSB and the Royal Bank of Scotland being given a £37 billon lifeline.
The government will be injecting around £5 billion into the Royal Bank of Scotland, and underwriting a further £15 billion of its shares. HBOS and Lloyds TSB will also receive a £17 billion emergency fund, on condition that the merger of the banks is reworked.
In return for the £37 billion rescue plan, the government will get to make decisions on how the banks are run, as well as have control over how bonuses are paid to management. Alistair Darling also added that no bonuses will be paid at HBOS and the Royal Bank of Scotland this year.
Add A Comment