Monday, January 19, 2009

New set of measures to help banks

The government has announced a second package of measures to support the banking system.

The long list of measures includes a scheme to offer insurance against banks losing more money from the toxic debt that started the credit crunch.

The banks will have to pay for the insurance, but the government says it does not expect to be paid in shares.

The Treasury will also be buying up to £50bn of safer assets from banks, which will include mortgage debt.

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