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UK set to announce multi-billion euro bank rescue

 UK set to announce multi-billion euro bank rescue
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Britain’s Finance Minister Alistair Darling is set to announce a rescue package for the UK banking system. Government sources have hinted that it is likely to include public money being injected into banks. Details of the deal have been finalised overnight.

“We have been working closely with the governor of the Bank of England, with the Financial Services Authority and financial institutions to put the banks on a longer term sound footing. Now I intend to make a statement before the markets open tomorrow morning and I will be making a statement in the House of Commons later in the day.”, Darling told reporters yesterday.

Meanwhile, in the latest of a series of moves, Iceland’s government has taken over the country’s second largest bank to save it from going to the wall. Russia has also agreed to a four billion euro aid package for the Icelandic financial sector.