Tonight:
4°c
The big bail-out
Evening Standard08.10.08
* At least £200 billion for short-term lending to banks to replace funds they normally borrow through the inter-bank market. The Bank of England will lend sterling for three months and dollars for a week.
* £25 billion recapitalisation facility for Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide, Royal Bank of Scotland and Standard Chartered to boost their weakened balance sheets and Tier 1 capital ratios. The money is most likely to be in the form of preference shares. In return, the Treasury will demand limits on shareholders' dividends and directors' pay and a commitment to keep lending to firms and home buyers.
* £25 billion top-up fund if the first recapitalisation proves inadequate.
* £250 billion government guarantee of bank bond issues – again to help shore up the banks' strained balance sheets.
