New British Bailout Adds $147 Billion
The government of Prime Minister Gordon Brown announced on Monday a new bailout for the British financial system that increases its control over lenders, saying it would offer banks insurance on troubled assets and take other measures to restore credit and support the foundering economy.
The government also said it was revising the terms of its bailout of Royal Bank of Scotland, raising its shareholding in the institution from about 58 percent to about 70 percent.
Speaking at the prime minister’s 10 Downing Street residence in London, Mr. Brown placed the blame for the financial crisis on “irresponsible lending” by the banks and said institutions that took advantage of the new measures would have to sign a legally binding agreement with the government to provide more credit to consumers and businesses.
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