The government has announced that it will inject up to £37bn of taxpayers money into Royal Bank of Scotland (RBS) Lloyds TSB and HBOS. RBS is to raise £20bn with a further £17bn being put into the HBOS and Lloyds TSB. On the brighter side of things Barclays is to raise £6.5bn without any government help.
These bail out plans mean that they taxpayers will own around 60% of RBS and 40% of the newly merged Lloyds TSB and HBOS. Both of these banks chief executives and chairmen are to resign after they have asked for the bail-out money. This cash is part of the money that the government pledged last week in a rescue plan that aims to stabilise the financial market.
These announcements can be seen as some of the biggest days in banking and is a humiliation for the countries top banks. The government are putting more and more money into these banks in order to try and help the economy. What are your views on this? Let me know.
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