Monday, October 13, 2008
A historic day for banking
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

The government's bail-out plan for the banks was last week just that, a plan. Now it has become a reality, with 37 billion of taxpayers' money going into RBS, whose chief executive Sir Fred Goodwin goes, HBOS and Lloyds TSB. Separately, Barclays in raising funds privately. Here is the Treasury's statement.

What is clear now is that every country of any size will need something like this plan - recapitalisation, liquidity and guarantees of bank lending - so the onus is on other EU countries to put Sunday's words into action. Initial market reaction has been favourable.