The British government has announced a bailout plan worth at least £175 billion for the country’s troubled banks . At a news conference Prime Minister Gordon Brown claimed the plan would be more radical than America’s £350 billion bailout, as the government seek to restore confidence in the financial markets, which Mr Brown said had ‘ceased to function’. He added, ‘This problem started in America with irresponsible actions and lending by some institutions. We have led the world today with a proposal to restructure our banking system. We are taking the steps that I believe other countries will take in the future’.
The British Treasury announced that at least £175 billion would be made available to banks under the special liquidity scheme, with a further £45 billion to be given to eight major banks as a form of direct support. The scheme includes the part nationalization of some banks, with Mr Brown affirming that the governments ‘expected to be rewarded for the support [they are providing]. Our stability and restructuring program is comprehensive, specific and breaks new ground. This is not the American plan. Our plan is to buy shares in the banks themselves and therefore we will have a stake in the banks’.
British Government Announces Bank Bailout Plan
British Government Announces Bank Bailout Plan
Wed, 08 Oct 2008
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