British government announces new aid package for banks
London - The British government Monday launched a second multibillion-pound package to stabilize banks aimed at unfreezing credit markets and softening the blow of a deepening recession.
Among the measures set out by Chancellor of the Exchequer Alistair Darling is a massive insurance scheme to protect banks from so-called toxic assets, a move it is hoped will encourage institutions to restart lending to businesses and households.
It is the second bail-out for the banks in the space of just three months. A banking recapitalization programme announced in October had failed to provide a sufficient platform for normal lending to resume.
In recent days, banking shares have again been falling sharply, amid fears that the banks were set to reveal further massive write- downs.
As part of Monday's scheme, the government stake in the badly-hit Royal Bank of Scotland (RBS) rose from 58 per cent to nearly 70 per cent. (dpa)
