British government will become major shareholder in banks

Egypt News.Net
Sunday 12th October, 2008

The British government is about to become the biggest shareholder in two of the country's largest banks.

Two of Britain's largest banks, The Royal Bank of Scotland and the Halifax Bank of Scotland are to receive a collective 35 billion-pound injection as part of the British government’s 500 billion pound rescue package.

The government could end up with 70 percent ownership of HBOS and 50 percent of RBS.

While Finance Minister Alistair Darling has denied that the state wanted to take over the banks, it is not clear what influence the government will have on the boards.

The rescue package involves a government guarantee for loan transactions between banks and government acquisitions of bank shares.

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