Britain Looks to Halt Economic Slide

Gordon Brown

British Prime Minister, Gordon Brown and Chancellor of the Excheqor Alistair Darling have started a hastily arranged meeting with the Govenor of the Bank of England and Chairman of Britain's Financial Services Authority, an the regulatory organisation for the UK's banks and lenders.

Downing Street has denied it is an "emergency meeting", adding that it would focus on "ongoing action" and that any announcements would be made in a "calm and orderly way".

The meeting follows the news that US President George Bush called Mr Brown earlier to discuss the global response to the financial crisis. Also the day has seen a sharp drop in UK Banking stocks after it emerged that bank bosses had met Chaleecor Alistair Darling on Monday to discuss fundraising.

HBOS dropped 42%, Royal Bank of Scotland (RBS) fell 39%, Barclays shed 9% and Lloyds TSB was down 13%.

Earlier in the day the UK's Department for Business today laid an Order in Parliament to enable Ministers to intervene and make decisions on mergers that may impact on the UK's financial stability.

The Government had announced that it would be seeking Parliamentary approval for this change on 18 September, at the same time as it issued an intervention notice in relation to the proposed merger of Lloyds TSB Group plc with HBOS plc.

Minister for Economic Competitiveness and Small Business, Shriti Vadera, said, "The Government took swift action in relation to the proposed merger of Lloyds and HBOS to support the UK financial system.

"In the present economic climate it is vital that financial stability can be considered alongside competition questions."

The Order must now be passed by both Houses of Parliament.

Back To Top

British government steps in to help banks

Associated Press

Wed Oct 8

1