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U.K. Initiates Another Banking Rescue Package
The United Kingdom earlier today (Monday) announced a second bank rescue package to shore up the nation’s ailing financial institutions and boost lending. The package includes insurance for banks against further credit losses, guarantees for asset-backed securities, and the purchase of private sector assets.
The centerpiece of the plan is an insurance program, called the Asset Protection Scheme, which will guarantee U.K. banks’ riskiest assets – specifically, those backed by mortgages and loans.
Financial institutions that take deposits and have more than $37 billion (25 billion pounds) of eligible assets will be the first to be included in the programs…
20Jan2009 | Money Morning | 0 comments | ContinuedU.K. Unveils Its Own Banking Bailout Package
The U.K. government yesterday (Wednesday) announced its own banking bailout package with an $87 billion (50 billion pound) recapitalization plan for the ailing British financial sector.
“The global market has ceased to function,” British Prime Minister Gordon Brown said yesterday at a press conference in London. “The banking system must be sounder, and that is why we are putting the capital in.”
Under the plan, the U.K. Treasury will provide $43.5 billion (25 billion pounds) to recapitalize banks and boost their Tier 1 capital ratio. A bank’s Tier 1 capital ratio is a key indicator of the firm’s financial strength. An additional $43.5 billion…
10Oct2008 | Money Morning | Comments Off | Continued
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