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Government bails out banks with £50bn rescue package

The Government has created a £50 billion rescue package for the banking system and will make the additional capital available to eight of the UK's largest banks.

In return for cash injection, the Government will receive preferential shares in those banks.
As part of the package, a further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.

The lenders that have confirmed they will take part in the scheme are Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Royal Bank of Scotland and Standard Chartered.

The Treasury said that other banks and building societies would be able to apply for inclusion in the plan.

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