Britain's Big Banks Bailout

The British government launched a massive bank rescue plan Oct. 8. But it likely won't be enough to head off recession, and the stock market dropped anyway
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The British government has announced the most comprehensive rescue package yet for any banking system in the world. The government will inject up to $88 billion of new capital into major British banks such as Barclays (BCS), Lloyds TSB (LYG), and HBOS (HBOS.L). And in an effort to ease fears that have reached near panic levels, the government will guarantee short and medium term bank funding. It estimates that the takeup of this offer could run to $440 billion.

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