£50 billion bailout for banks - by taxpayers
The government has just agreed a £50 billion emergency bailout package to rescue Britain’s banks. The measure is designed to prevent further banking failures during the ongoing global banking crisis and free up liquidity in the system.
A government backed guarantee is designed to increase confidence between the banks, who are presently not lending to each other. Any British bank can now effectively call on the government to guarantee any emergency capital borrowed from another financial institution.