Britain to spend 50 bln quid bailing out its banks
8th Oct 08, 10:02am
Shares in Britain's largest domestic bank Royal Bank of Scotland fell (RBS) 39% and shares in takeover target HBOS fell 42% overnight on expectations the British Government will announce a 50 billion pound bailout package that could wipe out shareholders. British leaders and its banks are reported to be in crisis talks about an industry wide bailout. The BBC reported overnight that RBS and Barclays approached the Chancellor of the Exchequer Alistair Darling to ask for a bailout. Barclays denied the report, but RBS did not. British newspapers are reporting the government will announce a 50 billion pound bailout within the next 18 hours. "Britain's taxpayers will tomorrow be committed to spending more than £50 billion to bail out the high-street banks in a bid to avert a cataclysmic failure of confidence," The Times reported. "Alistair Darling will tell the City in an early morning announcement that the sum is available for "investment" in leading banks that have demanded help from the Government," it reported.