This morning’s papers were full of info about the new insurance package which will help out any British bank which accepts the government’s offer. Here is the story on ft.com.

The real news to emerge since then is the fact that banks will be able to pay for this insurance using either cash or equity. In other words, we may see taxpayers taking an even bigger stake in RBS or Lloyds/HBOS. In theory the state may even take stakes in other banks - such as HSBC or Barclays - although this seems unlikely for now.

January 19, 2009 12:05am in Alistair Darling, Bank of England, Banks, Credit Crunch, Gordon Brown, Treasury | Comment