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Live Text - Bank rescue plan Live Text - Bank rescue plan
(10 minutes later)
By Brian WheelerBy Brian Wheeler
0949: The D word. Have they "dithered" over this rescue plan? Mr Darling takes this one. The government needed to time to work through the complex negotiations. The speculation about it had not been helpful, he says. "It was right to take the necessary time to get the thing right," says the chancellor. Mr Brown says, again, that it is a far more comprehensive plan than people expected.
0945: This is definitely not nationalisation of the banks, says Mr Darling: "We are not seeking to take public control of these institutions." It is a "completely different proposition". The government is taking a shareholding - and the banks can choose to draw on the £50bn fund if they want to. They can also raise money elsewhere, he says.
0943: Mr Brown wants other country to follow Britain's lead by restructuring their banking sectors. He keeps stressing that this is not a short-term measure to maintain lending, but a much bigger programme to put the banking system on a sounder footing for the future.
0942: Mr Brown is accused of trying to walk away from the wreckage of the financial system he created "smelling of roses". Now is not the time to talk about the past, says the prime minister. The government has taken "radical" action, he adds.
0940: "These are more radical proposals than people expected," says Mr Brown because the government wants to restructure the entire banking system, not just provide a short-term bail out. The government is also getting tough with the banks over executive pay and bonues, Mr Brown assures reporters regulation. "There are strings attached" to the the rescue package.
0935: Asked why the government won't guarantee everyone's savings, Mr Brown sticks to his previous form of words to say that the government has always protected savers.0935: Asked why the government won't guarantee everyone's savings, Mr Brown sticks to his previous form of words to say that the government has always protected savers.
0933: So, adds Robinson, the government is making a vast investment on behalf of taxpayers - if it is such a great idea why did they not do it earlier? The chancellor says they are doing it because it is necessary to stabilise the economy.0933: So, adds Robinson, the government is making a vast investment on behalf of taxpayers - if it is such a great idea why did they not do it earlier? The chancellor says they are doing it because it is necessary to stabilise the economy.
0932: Where will the money come from, asks BBC political editor Nick Robinson at the press conference. Mr Brown says the government is buying shares in the banks and taxpayers will get the "upside". It is commercial lending - it is "not the American scheme". Every family benefits from the " the stability of the banking system," adds Mr Brown.0932: Where will the money come from, asks BBC political editor Nick Robinson at the press conference. Mr Brown says the government is buying shares in the banks and taxpayers will get the "upside". It is commercial lending - it is "not the American scheme". Every family benefits from the " the stability of the banking system," adds Mr Brown.
0931: By e-mail:"The government have done all that they can. It is now for banks to do what they are (supposedly) good at and make this work." Naden, Horsham, UK "I hope we have learned our lesson - free markets must be managed by the State. Nationalise the Bank of England now because I insist that I have a vote on how my country's finances are run." Saffie, Ipswich, UK0931: By e-mail:"The government have done all that they can. It is now for banks to do what they are (supposedly) good at and make this work." Naden, Horsham, UK "I hope we have learned our lesson - free markets must be managed by the State. Nationalise the Bank of England now because I insist that I have a vote on how my country's finances are run." Saffie, Ipswich, UK
0930: It is Mr Darling's turn now. He will be making a Commons statement at 1230 immediately after PM's questions. The rescue package is just one part of a range of measures the government is taking, he says.0930: It is Mr Darling's turn now. He will be making a Commons statement at 1230 immediately after PM's questions. The rescue package is just one part of a range of measures the government is taking, he says.
0928: Mr Brown, speaking in Number 10, says the government expects to provide a total of £250bn in guarantees to the banks. The government is taking legal action against the Icelandic authorities over the losses suffered by British savers. Credit lines to small businesses will be kept open. Taxpayers will not lose out and could gain: "We will insist that the taxpayer gets appropriate reward from the upside."0928: Mr Brown, speaking in Number 10, says the government expects to provide a total of £250bn in guarantees to the banks. The government is taking legal action against the Icelandic authorities over the losses suffered by British savers. Credit lines to small businesses will be kept open. Taxpayers will not lose out and could gain: "We will insist that the taxpayer gets appropriate reward from the upside."
0924: The prime minister starts by talking about how the financial contagion spread from America. These are not normal times, says Mr Brown. "This is not a time for conventional thinking or outdated dogma."0924: The prime minister starts by talking about how the financial contagion spread from America. These are not normal times, says Mr Brown. "This is not a time for conventional thinking or outdated dogma."
0922: The Darling and Brown show is underway. Brown strides in with confidence and starts talking about the "bold" solutions unveiled today.0922: The Darling and Brown show is underway. Brown strides in with confidence and starts talking about the "bold" solutions unveiled today.
0920: Bad news from the markets. Mr Darling's rescue plan has failed to lift the gloom - the FTSE 100 fell 6.8% on opening. All banking shares have fallen, with the exception of HBOS which is up 16%, the only gainer on the FTSE 100 index.0920: Bad news from the markets. Mr Darling's rescue plan has failed to lift the gloom - the FTSE 100 fell 6.8% on opening. All banking shares have fallen, with the exception of HBOS which is up 16%, the only gainer on the FTSE 100 index.
0919: I'll be keeping this page updated with all the key developments during the day. I'll also be including reaction from BBC correspondents, City experts and the pick of your thoughts on the day's events. You can text on 61124 (UK only, usual charges apply) or email our Have Your Say debate.0919: I'll be keeping this page updated with all the key developments during the day. I'll also be including reaction from BBC correspondents, City experts and the pick of your thoughts on the day's events. You can text on 61124 (UK only, usual charges apply) or email our Have Your Say debate.
0904: Prime Minister Gordon Brown and Chancellor Alistair Darling are due to give a news conference within the next ten minutes or so to spell out more details and to answer questions on the plan.0904: Prime Minister Gordon Brown and Chancellor Alistair Darling are due to give a news conference within the next ten minutes or so to spell out more details and to answer questions on the plan.
0901: In Westminster the big event at noon is Gordon Brown's first prime ministers' questions of the new Parliamentary session. He is in a much stronger position than he was at the start of the summer break, having seen off his the rebels in his own party (for now) and reshuffled his top team. But the economic crisis is set to dominate the event. Will he guarantee all savers' bank deposits? Is it time to widen the remit of the Bank of England so interest rates can be cut? Why should taxpayers bail out the banks?0901: In Westminster the big event at noon is Gordon Brown's first prime ministers' questions of the new Parliamentary session. He is in a much stronger position than he was at the start of the summer break, having seen off his the rebels in his own party (for now) and reshuffled his top team. But the economic crisis is set to dominate the event. Will he guarantee all savers' bank deposits? Is it time to widen the remit of the Bank of England so interest rates can be cut? Why should taxpayers bail out the banks?
0900: The story so far: With the financial system apparently teetering on the brink, the government steps in to part-nationalise Britain's biggest banks. All eyes will be on market reaction to Chancellor Alistair Darling's £50bn rescue package. Has he done enough to halt the slide in share prices and restore some stability?0900: The story so far: With the financial system apparently teetering on the brink, the government steps in to part-nationalise Britain's biggest banks. All eyes will be on market reaction to Chancellor Alistair Darling's £50bn rescue package. Has he done enough to halt the slide in share prices and restore some stability?