UK government announces second bank bailout

UK government announces second bank bailout
AP
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First Published: Mon, Jan 19 2009. 01 57 PM IST
Updated: Mon, Jan 19 2009. 01 57 PM IST
London: Britain says it will spend hundreds of billions of pounds in a second bank bailout partly by loosening up credit markets.
The government says the new plan is needed because the £37 billion bailout (about $55 billion) announced in October has not done enough to boost the economy and restore bank lending to needed levels.
The new plan calls in part for a new insurance program designed to protect banks from so-called toxic assets.
Treasury chief Alistair Darling said on Monday that banks benefiting from the new plan will have to pass money on to borrowers.
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First Published: Mon, Jan 19 2009. 01 57 PM IST
More Topics: Britain | Bailout | UK | Recession | Economy |