The U.K. government early Wednesday is set to announce one of the broadest bailouts of the global financial crisis, with an injection of tens of billions of pounds into some of the country's largest financial institutions, The Wall Street Journal said, citing people familiar with the matter.
The Journal said that Britain’s plan could cost as much as GBP45 billion (US$78.56 billion), and involves the government buying stakes in Royal Bank of Scotland Group, Barclays and perhaps the combined HBOS and Lloyds TSB.
The banks will likely be briefed Tuesday night or Wednesday morning on the terms of the plan, a person familiar with the matter told the Journal.
The Journal said it wasn’t clear what the banks would give up in exchange for the cash infusions – the banks may face new capital requirements, one person suggested; another said that existing shareholders may get the option to invest alongside the government.
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