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
British Prime Minister Gordon Brown, right, speaks to French President Nicolas Sarkozy, left, on Sunday, Oct. 12, 2008.   (AP Photo/Charles Platiau, Pool)
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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.