2009 United Kingdom bank rescue package
Encyclopedia
A second bank rescue package totalling at least £
50 billion was announced by the British government on 19 January 2009, as a response to the ongoing global financial crisis. The package was designed to increase the amount of money that banks could lend to businesses and private individuals. This aid comes in two parts: an initial £50 billion being made available to big corporate borrowers , and a second undisclosed amount that forms a form of insurance against banks suffering big losses.
Following its announcement, it has been largely criticised by opposition parties and the UK media.
After the October 2008 bailouts of RBS, HBOS and Lloyds TSB and Lloyds TSB's January 2009 merger with HBOS
, the Government was holding a 43% stake in Lloyds Banking Group
, but then on March 6, 2009, after it became apparent that the HBOS merger had been bad for Lloyds since HBOS had made losses of £11bn, the Government announced it would increase its stake in Lloyds to 65% (77% if including non-voting preference shares).
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
50 billion was announced by the British government on 19 January 2009, as a response to the ongoing global financial crisis. The package was designed to increase the amount of money that banks could lend to businesses and private individuals. This aid comes in two parts: an initial £50 billion being made available to big corporate borrowers , and a second undisclosed amount that forms a form of insurance against banks suffering big losses.
Following its announcement, it has been largely criticised by opposition parties and the UK media.
After the October 2008 bailouts of RBS, HBOS and Lloyds TSB and Lloyds TSB's January 2009 merger with HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
, the Government was holding a 43% stake in Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
, but then on March 6, 2009, after it became apparent that the HBOS merger had been bad for Lloyds since HBOS had made losses of £11bn, the Government announced it would increase its stake in Lloyds to 65% (77% if including non-voting preference shares).
See also
- UK Financial Investments LimitedUK Financial Investments LimitedUK Financial Investments Ltd is a company set up in November 2008 by the UK Government to manage its shareholding in banks subscribing to its recapitalisation fund. They include Lloyds Banking Group , Royal Bank of Scotland Group and Northern Rock...
- Asset Protection AgencyAsset Protection AgencyThe Asset Protection Agency is an executive agency of the Government of the United Kingdom, operating as part of HM Treasury. The Agency was created in response to the late-2000s recession to implement the Asset Protection Scheme, part of the 2009 United Kingdom bank rescue package.-External links:*...
- Bank of England#Asset Purchase Facility
- 2008 United Kingdom bank rescue package2008 United Kingdom bank rescue packageA bank rescue package totalling some £500 billion was announced by the British government on 8 October 2008, as a response to the ongoing global financial crisis. After two unsteady weeks at the end of September, the first week of October had seen major falls in the stock market and severe worries...