Government to take majority stake in RBS, page 1

Treasury sources confirmed that the Government had drawn up plans to take on a majority stake in Royal Bank of Scotland and big holdings in Lloyds TSB, HBOS and Barclays under its £500bn plan to bail out the banking industry.

Talks were continuing this weekend, added the source, warning that it was a fast-moving environment.

The Government is expected to invest £12bn in RBS, £10bn in HBOS, £7bn in Lloyds TSB and £3bn in Barclays, following request for the emergency funding from the banks

Please visit the link provided for the complete story.

further on in the article..

Analysts believe a further 20 per cent fall in bank shares this week would leave the Government with little option but to nationalise virtually the entire sector.

Please visit the link provided for the complete story.

Governmen t to become majority stakeholder in British banks

An announcement will be made tomorrow before the markets open and there are rumours that stock markets might not open tomorrow - or for the whole week!

UK government is expected to become the majority stake holder in HBOS and the Royal Bank of Scotland on Monday.