Central banks unite for money markets boost

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Central banks unite for money markets boost

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In a coordinated move to stabilise global money markets, six of the world’s major central banks have pumped almost 125 billion euros into the financial system.

The measures, in the UK, the US and Europe, come amid news of a takeover deal of the British bank HBOS.

And the dramatic reshaping of the financial landscape continues, with reports that the second largest US investment bank Morgan Stanley is facing a possible takeover.

Stocks on Asian markets are down, while Russian stock markets remain closed for a second day.

The British Bank Lloyds TSB has announced a deal to buy Halifax Bank of Scotland.

The UK government says it plans to make sure the deal gets regulatory approval, saying that is needed to ensure the stability of the UK financial system.

Observers say the surprise rescue by the US government of the American International Group has done little to reassure nervous investors.

They say numerous financial services firms are scrambling to sell themselves, and more major deals are expected in the days to come.