Giants lose £13.2bn in shares rout and at last they will act

Published Date: 08 October 2008 By Bill Jamieson and Lindsay McIntosh A MASSIVE rescue plan to bolster UK banks was expected to be announced by the government this morning after £13.2 billion was wiped from Scotland's leading financial institutions in a day. The raid on HBOS and Royal Bank of Scotland fuelled concerns that major corporate customers are planning to move their assets to safer havens. RBS shares closed 39 per cent lower at 90p, wiping a further £9.6 billion off the group's market capitalisation. Shares in HBOS plunged 41.5 per cent to 94p – a £3.6 billion loss – despite assurances last week that the emergency takeover by Lloyds TSB would go through as planned. Alistair Darling, the Chancellor, said last night he would make a statement this morning, before the markets open at 9am, on government plans "to... [read full story]