UK Bailout Plan.

The UK government is pumping $63bn into RBS, HBOS, and Lloyds TSB. The UK Prime minister Gordon Brown and Chancellor Alistair Darling gave a televised speech this morning to reassure investors of their intention to stabilize banks so that they can continue to operate on a commercial basis. The move seems to resonnate well with investors and markets so far have responded positively. One notebale absentee from this so called government investment is Barclays Bank which has opted to raise 6.5bn Pounds without government help from private investors. Although the money being pumped into these banks is tax payers money, this plan would mean tax payers would own 60% of RBS and 40% of the merged Lloyds and HBOS.

Gordon Brown has so far shown exemplary leadership, calling on European member states and the US governemnt to emulate it's plan to weather the financial crisis. Brown's latest moves plays well into his satement a couple of weeks ago during the Labour Party conference that "the government must be a rock of stability for British people during the credit crisis". Despite this move, it is widely believed that the economic slow down is expected to continue take a toll on the economy. Most importantly is the backing Gordon Brwon has recieved from his political rivals including the Conservatives and Liberal Democrats.