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GORDON Brown declared today that the government would be the `rock of stability' as he threw three of Britain's biggest banks a £37bn lifeline as part of a dramatic taxpayer rescue of the financial system. The government is injecting £5bn into Royal Bank of Scotland and also underwriting a £15bn share issue by the bank. Lloyds TSB and its proposed new partner Halifax Bank of Scotland are also receiving up to £17bn of emergency funding, with the terms of the banks' merger also being reworked. Under the unprecedented package, the government could theoretically end up owning about 60 per cent of RBS, and 43.5pc of the combined Lloyds TSB-HBOS entity. Under the deal banks have been ordered to offer competitively-priced lending to homeowners and small businesses. They will also offer support for schemes to help people struggling... [read full story]
