BANKRUPT BANKER
U.K. government is finalizing plans to invest billions of pounds in four of the country's largest banks
Sunday 12 October 2008
U.K. government is finalizing plans to invest billions of pounds in four of the country's largest banks, according to media reports.Government taking majority stakes in Royal Bank of Scotland Group , HBOS Plc
An announcement about the deals is aimed for 7 a.m. Monday, The Wall Street Journal reported on its Web site Sunday. The scale of the fundraising could lead to trading at the London stock market being suspended, reports said. The U.K. is expected to invest 12 billion pounds ($20 billion) in RBS, 10 billion pounds in HBOS, 7 billion pounds in Lloyds TSB Group PLC (UK:LLOY: news, chart, profile) and 3 billion pounds in Barclays PLC (UK:BARC: news, chart, profile) , after receiving urgent requests from the banks for funding, according to the Sunday Telegraph. Lloyds TSB said on Sept. 18 that it would merge with HBOS in a deal that would create the largest retail bank, mortgage lender and life insurance provider in the U.K. The Sunday Times said that RBS will ask the government to underwrite a 15 billion pounds cash call. The moves could see the U.K. government owning 70% of HBOS and 50% of RBS, said the Sunday Times. That would mean it could take board seats and control dividend payments at both companies, the newspaper said.
