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Brown offers banks 2nd bail-out as recession bites

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Brown offers banks 2nd bail-out as recession bites


British Prime Minister Gordon Brown has unveiled a second bail-out for the country’s troubled banks. The government will offer guarantees for their debt and create the equivalent fo a 55 billion euro fund to boost cash flow.

Brown said: “Good businesses must have access to credit. Jobs should not be lost needlessly. It is because of this that we are taking the action to expand lending, that we are outlining today. The impact of today’s announcements on public finances will be temporary, investments will be held for no longer than is necessary to ensure stability. We will protect taxpayer’s interests, liabilities will be backed by assests and fees will be charged for the schemes that we are introducing.” Brown won high praise for the country’s first bank bailout last October, worth around 40 billion euros. It was emulated around the world but a poll on Sunday showed his popularity waning again with an election due in less than 18 months. The latest plan will also see the government increase its stake in Royal Bank of Scotland to 70 percent, after it announced today the biggest loss in British corporate history. With recession in Britain set to be confirmed this week, many analysts predict government intervention in banking will not end here.

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