British Banking System To Receive Unprecedented $100 Billion Bailout

British Banking System To Receive Unprecedented $100 Billion Bailout

Alistair Darling is preparing to announce an unprecedented £50bn bailout of Britain's banking system in an effort to save the housing market from collapse.

The Chancellor will tomorrow tell the Commons that the Bank of England is to allow lenders to swap their assets for Government backed bonds in a move intended to restore confidence.

In recent months the US sub-prime crisis had exposed British banks to enormous losses and, unsure which of their number is most at risk, they have sought to hoard cash reserves to protect their own positions.

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