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| Version 8 | Version 9 |
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| Government to unveil bank rescue | Government to unveil bank rescue |
| (10 minutes later) | |
| The UK government is poised to announce details of a comprehensive rescue package for the banking system, the BBC's business editor has learned. | The UK government is poised to announce details of a comprehensive rescue package for the banking system, the BBC's business editor has learned. |
| It will include a proposal to inject capital into banks and to provide a standby facility to ensure UK banks have enough cash. | It will include a proposal to inject capital into banks and to provide a standby facility to ensure UK banks have enough cash. |
| It is the government's attempt to stabilise the country's banking system. | It is the government's attempt to stabilise the country's banking system. |
| It comes after a day of steep falls in UK banking stocks and a high-level Downing Street meeting. | It comes after a day of steep falls in UK banking stocks and a high-level Downing Street meeting. |
| Prime Minister Gordon Brown has held talks with Bank of England Governor Mervyn King. | Prime Minister Gordon Brown has held talks with Bank of England Governor Mervyn King. |
| Chancellor Alistair Darling and the chairman of the Financial Services Authority, Lord Turner, also took part in the discussions. | Chancellor Alistair Darling and the chairman of the Financial Services Authority, Lord Turner, also took part in the discussions. |
| Downing Street denied it was an "emergency meeting", adding that it would focus on "ongoing action". | Downing Street denied it was an "emergency meeting", adding that it would focus on "ongoing action". |
| The BBC's business editor Robert Peston said the rescue plan would be unveiled within hours. | The BBC's business editor Robert Peston said the rescue plan would be unveiled within hours. |
| "In a UK context, this is a very big moment," he said. | "In a UK context, this is a very big moment," he said. |
| Shares hit | |
| Banking shares dropped after the bosses of biggest UK banks meet with Chancellor Alistair Darling on Monday evening - raising fears that the sector needs government intervention. | |
| HBOS dropped 42%, Royal Bank of Scotland (RBS) fell 39%, Barclays shed 9% and Lloyds TSB was down 13%. | |
| Monday's meeting was attended by Mr Darling, Mr King and Lord Turner, as well as representatives of RBS, Barclays and Lloyds TSB. | |
| The Treasury is understood to have been formulating a plan that would allow the government to provide extra funding to the banks in exchange for stakes in them. | |
| The government said it would not speculate about what policy options were being considered. | |
| Savers' fears | |
| Meanwhile, customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts. | |
| UK authorities are preparing for the bank's parent in Iceland, Landsbanki, to be declared insolvent. | |
| Icesave has 350,000 savers in the UK and Netherlands, with about £4.5bn of deposits. |