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UK Props Up Major Banks; Fed Offers Cash

Moves to shore up financial system have global markets rising

By Jim O'Neill,  Newser User

Posted Oct 13, 2008 7:08 AM CDT
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(Newser) – Governments across the globe are acting with “an enormous amount of congruence” and speed as they pour billions of dollars into rescue plans hoping to keep a sinking banking system afloat, reports the Wall Street Journal. The British government today provided $60 billion to prop up 3 banks, and the US Fed announced a massive infusion of cash into European markets. Global markets haven risen sharply on the news.

The Brits are providing $34 billion to the Royal Bank of Scotland and another $29 billion to Lloyds TSB and HBOS. Germany, meanwhile, said it might nationalize some banks; Australia and the United Arab Emirates said they were guaranteeing bank deposits; and France and Italy planned announcements later today.

British Prime Minister Gordon Brown, right, speaks to French President Nicolas Sarkozy, left, on Sunday, Oct. 12, 2008.
British Prime Minister Gordon Brown, right, speaks to French President Nicolas Sarkozy, left, on Sunday, Oct. 12, 2008.   (AP Photo/Charles Platiau, Pool)
Britain's Prime Minister Gordon Brown,addresses a press conference at 10 Downing Street in London, on Monday Oct. 13, 2008.
Britain's Prime Minister Gordon Brown,addresses a press conference at 10 Downing Street in London, on Monday Oct. 13, 2008.   (AP Photo/Cavan Pawson)
French President Nicolas Sarkozy, right, welcomes Britain's Prime Minister Gordon Brown, left, before a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.
French President Nicolas Sarkozy, right, welcomes Britain's Prime Minister Gordon Brown, left, before a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.   (AP Photo/Remy de la Mauviniere)
Britain's Prime Minister Gordon Brown listens to a question after delivering a speech in London Monday Oct.13, 2008.
Britain's Prime Minister Gordon Brown listens to a question after delivering a speech in London Monday Oct.13, 2008.   (AP Photo)
French President Nicolas Sarkozy, gestures, as he delivers his speech after a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.
French President Nicolas Sarkozy, gestures, as he delivers his speech after a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.   (AP Photo/Remy de la Mauviniere)
French President Nicolas Sarkozy is seen during a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.
French President Nicolas Sarkozy is seen during a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.   (AP Photo/Michel Spingler)
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Europe details plans for banking rescue
Associated Press

IMF on sidelines during banking crisis
Forbes

Money • World

 
Europe • Nicolas Sarkozy • Federal Reserve • Gordon Brown • Royal Bank of Scotland • credit crisis • bailout • HBOS • financial crisis • Lloyds TSB

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