Britain to announce rescue package for banks

October 8th, 2008 - 3:27 am ICT by IANS  

Gordon BrownLondon, Oct 8 (DPA) The British government Tuesday approved a comprehensive rescue package to stabilize the banking system with a capital injection of an estimated 50 billion pounds ($87 billion), the BBC reported.In addition to the capital boost, aimed at shoring up the balance sheets of leading banks, the agreement includes the creation of a standby facility for the provision of any funds that might be needed to guarantee the day-to-day operations of banks.

The agreement was sealed after emergency talks in Downing Street between Prime Minister Gordon Brown, Chancellor of the Exchequer Alistair Darling, Bank of England governor Mervyn King and the head of the Financial Services Authority, Adair Turner.

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