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Live Text - Bank rescue plan Live Text - Bank rescue plan
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By Brian Wheeler Follow all the latest developments as it happens on this page. You can also read BBC Business Editor Robert Peston's view and BBC Political Editor Nick Robinson's view. We also want your thoughts.By Brian Wheeler Follow all the latest developments as it happens on this page. You can also read BBC Business Editor Robert Peston's view and BBC Political Editor Nick Robinson's view. We also want your thoughts.
1149: Douglas Alexander to the rescue. The international development secretary repeats the government's line that Britain is well placed to weather a downturn and the government has taken the right course to deal with "unprecedented" international circumstances. Tory Philip Hammond accuses him of being "complacent" and warns Britain is in a worse place than other major economies because of the level of its borrowing.
1148: Yes, we are heading for a recession, says recently departed trade minister Lord Digby Jones. There is a crisis of confidence and no amount of government money will change that, the former CBI chief tells the BBC's Daily Politics.
1147: Shadow chief secretary to the Treasury Philip Hammond says the Conservatives broadly support the government's rescue plan, subject to certain conditions. The Tories want to know what assurances the government has received from the banks that lending to business and homeowners will start again and that taxpayers will get their money back, he tells the Daily Politics.
1145: All eyes now turn to the 30 minute prime minister's questions session in the House of Commons at noon. Both the Conservatives and the Lib Dems have said they will back the £50bn rescue package. They are anxious to avoid accusations of playing politics at a time of national emergency. But Mr Brown is expected to face tough questions about his handling of the economy in the run up to the crisis and whether taxpayers will get their money back. Mr Darling will then give more details of the plan, and face questions from MPs, in a statement that will last for about an hour
1140: By e-mail: "The package announced today should work in theory, but in practice it won't. This is because there is no longer any trust in our financial systems or this discredited labour government. Brown and Darling's years of spin, lies and stealth have finally caught up with them!" Rob, Ivybridge, UK"I am furious! The banks should be nationalised and the incompetent fat cats fired. The bubble has burst on these overpaid bankers. Time to pay the ferryman!" David, Swindon, UK1140: By e-mail: "The package announced today should work in theory, but in practice it won't. This is because there is no longer any trust in our financial systems or this discredited labour government. Brown and Darling's years of spin, lies and stealth have finally caught up with them!" Rob, Ivybridge, UK"I am furious! The banks should be nationalised and the incompetent fat cats fired. The bubble has burst on these overpaid bankers. Time to pay the ferryman!" David, Swindon, UK
1137 Bank chiefs have lined up to welcome the rescue package - but some said they were already strong enough not to need taxpayers' help. HSBC and Standard Chartered explicitly ruled out taking part in the recapitalisation scheme, while building society Nationwide said it was "not under any capital pressure". Others such as Royal Bank of Scotland and Barclays have said they would join in certain parts of the rescue, while Lloyds TSB, which is buying Halifax Bank of Scotland, said it was assessing the implications.1137 Bank chiefs have lined up to welcome the rescue package - but some said they were already strong enough not to need taxpayers' help. HSBC and Standard Chartered explicitly ruled out taking part in the recapitalisation scheme, while building society Nationwide said it was "not under any capital pressure". Others such as Royal Bank of Scotland and Barclays have said they would join in certain parts of the rescue, while Lloyds TSB, which is buying Halifax Bank of Scotland, said it was assessing the implications.
1134: Newspapers have been reacting to the rescue package. The Financial Times described it as a "momentous moment" in British politics and noted the broad support of the Conservatives and the Lib Dems showed that "normal politics had been suspended". The Guardian said the scale of the plan suggested ministers would insist on a crackdown on executive pay as a price for their intervention. The Times said that if all went well the taxpayer could make a "tidy profit" but said City experts believed a blanket guarantee on bank deposits may also be needed. The Daily Telegraph said the PM had sent mixed messages on the security of bank deposits, intervening on behalf of British customers of Icelandic banks but not pledging a 100% guarantee for all savings. The Daily Mail said the PM was "desperate" not to portray the rescue as a "crisis measure", adding that the plan could cost taxpayers up to £16,000 each. The Wall Street Journal, meanwhile, described the plan as "bold" and said it was designed to end fears about the "viability of individual institutions".1134: Newspapers have been reacting to the rescue package. The Financial Times described it as a "momentous moment" in British politics and noted the broad support of the Conservatives and the Lib Dems showed that "normal politics had been suspended". The Guardian said the scale of the plan suggested ministers would insist on a crackdown on executive pay as a price for their intervention. The Times said that if all went well the taxpayer could make a "tidy profit" but said City experts believed a blanket guarantee on bank deposits may also be needed. The Daily Telegraph said the PM had sent mixed messages on the security of bank deposits, intervening on behalf of British customers of Icelandic banks but not pledging a 100% guarantee for all savings. The Daily Mail said the PM was "desperate" not to portray the rescue as a "crisis measure", adding that the plan could cost taxpayers up to £16,000 each. The Wall Street Journal, meanwhile, described the plan as "bold" and said it was designed to end fears about the "viability of individual institutions".
1132: Political parties must come together to save the British economy, says Lib Dem leader Nick Clegg. But - in a possible taste of the line of questioning we can expect from him later at prime minister's questions - he calls for interest rate cuts and tax cuts for low and middle income families and an international agreement on new banking regulations.1132: Political parties must come together to save the British economy, says Lib Dem leader Nick Clegg. But - in a possible taste of the line of questioning we can expect from him later at prime minister's questions - he calls for interest rate cuts and tax cuts for low and middle income families and an international agreement on new banking regulations.
1120: How long will it take for the banks to start lending again? That will be the acid test of today's package, says the CBI's John Cridland on the BBC News Channel, but it will all be lost in the "background noise" unless the Bank of England cuts interest rates by at least half a percent on Thursday. Consumers must be given the confidence to begin spending sensibly again, he says.1120: How long will it take for the banks to start lending again? That will be the acid test of today's package, says the CBI's John Cridland on the BBC News Channel, but it will all be lost in the "background noise" unless the Bank of England cuts interest rates by at least half a percent on Thursday. Consumers must be given the confidence to begin spending sensibly again, he says.
1110: The TUC is also calling for interest rate cuts and refrm of the banking sector. General Secretary Brendan Barber says: "It is vital that the vast sums of taxpayers' money are used to change bank behaviour, not just bail them out. Fat cats must be put on a strict diet. They must start to lend to business again, and they must cut the cost of borrowing."1110: The TUC is also calling for interest rate cuts and refrm of the banking sector. General Secretary Brendan Barber says: "It is vital that the vast sums of taxpayers' money are used to change bank behaviour, not just bail them out. Fat cats must be put on a strict diet. They must start to lend to business again, and they must cut the cost of borrowing."
1100: The CBI adds its voice to calls for an interest rate cut. Director General John Cridliand welcomes the government's rescue package - particularly Mr Brown's reassurance that it will keep lines of credit open to small and medium sized businesses, seen as essential to stave off job cuts - but adds: "This step to build confidence in the City needs to be followed tomorrow by a half point cut in interest rates to boost consumer confidence."1100: The CBI adds its voice to calls for an interest rate cut. Director General John Cridliand welcomes the government's rescue package - particularly Mr Brown's reassurance that it will keep lines of credit open to small and medium sized businesses, seen as essential to stave off job cuts - but adds: "This step to build confidence in the City needs to be followed tomorrow by a half point cut in interest rates to boost consumer confidence."
1053: The Taxpayers Alliance, the pressure group which campaigns against government waste, is a rare voice at this stage not supporting the plan. The group, whose backers include some high profile Tory donors, says "the government is using taxpayers' money as an easy way out and haven't fully explored other options that don't put £50bn of our hard-earned cash on the line" and urges moves to stop the cash being "frittered away on excessive bonuses" and calls for better regulation and an interest rate cut.1053: The Taxpayers Alliance, the pressure group which campaigns against government waste, is a rare voice at this stage not supporting the plan. The group, whose backers include some high profile Tory donors, says "the government is using taxpayers' money as an easy way out and haven't fully explored other options that don't put £50bn of our hard-earned cash on the line" and urges moves to stop the cash being "frittered away on excessive bonuses" and calls for better regulation and an interest rate cut.
1055: An update on how the banking sector has responded so far on London's stock market. Shares in HBOS, which nosedived on Tuesday, are 40% higher after Lloyds TSB said its proposed acquisition was back on track. Royal Bank of Scotland (which includes NatWest) was 12% higher but other banks were down as they await further details from the chancellor. Shareholders face seeing their stakes diluted and their dividend payments cut, although the prospect of an interest rate cut on Thursday should soothe investors's nerves. There's still a lot of detail about the rescue plan to emerge.1055: An update on how the banking sector has responded so far on London's stock market. Shares in HBOS, which nosedived on Tuesday, are 40% higher after Lloyds TSB said its proposed acquisition was back on track. Royal Bank of Scotland (which includes NatWest) was 12% higher but other banks were down as they await further details from the chancellor. Shareholders face seeing their stakes diluted and their dividend payments cut, although the prospect of an interest rate cut on Thursday should soothe investors's nerves. There's still a lot of detail about the rescue plan to emerge.
1042: A comment posted on Nick Robinson's blog: "How do the gruesome twosome get away with it? What they have announced is an 'investment'. So why does the PM only talk about taking advantage of the 'upside'. Surely the whole point with investments is that they're not guaranteed, and there is an obvious and associated potential downside too" neiljhuz.1042: A comment posted on Nick Robinson's blog: "How do the gruesome twosome get away with it? What they have announced is an 'investment'. So why does the PM only talk about taking advantage of the 'upside'. Surely the whole point with investments is that they're not guaranteed, and there is an obvious and associated potential downside too" neiljhuz.
1038: The Royal Bank of Scotland has said it will not be overhauling its management in return for getting potentially huge sums in public funding. The bank, whose senior executives have been criticised for running up big losses in the past year, said management changes were not "a feature" of its discussions with the Treasury. Earlier, Alistair Darling said changes at RBS were not a precondition of it receiving public money and management issues were a matter for the firm's board and shareholders only.1038: The Royal Bank of Scotland has said it will not be overhauling its management in return for getting potentially huge sums in public funding. The bank, whose senior executives have been criticised for running up big losses in the past year, said management changes were not "a feature" of its discussions with the Treasury. Earlier, Alistair Darling said changes at RBS were not a precondition of it receiving public money and management issues were a matter for the firm's board and shareholders only.
1037: So if it taking a stake in the biggest banks is such a great idea, why didn't they do it years ago? That was the question Nick Robinson asked at the press conference earlier. He explores some of the answers in his blog entry.1037: So if it taking a stake in the biggest banks is such a great idea, why didn't they do it years ago? That was the question Nick Robinson asked at the press conference earlier. He explores some of the answers in his blog entry.
1021: The government's plan gets the thumbs up from the Lib Dems. Spokesman Jeremy Browne says it has taken the "right" action to ensure the banks can function again. He also called for a substantial interest rate cut to kick start the economy and get people borrowing again.1021: The government's plan gets the thumbs up from the Lib Dems. Spokesman Jeremy Browne says it has taken the "right" action to ensure the banks can function again. He also called for a substantial interest rate cut to kick start the economy and get people borrowing again.
1017: "If this does not work, this government is pretty much sunk," says the BBC's Landale. Mr Brown has staked his reputation on being the man to see the country through tough times. If it fails, he will find it very difficult to carry on.1017: "If this does not work, this government is pretty much sunk," says the BBC's Landale. Mr Brown has staked his reputation on being the man to see the country through tough times. If it fails, he will find it very difficult to carry on.
1015: The BBC's James Landale describes the rescue package as " big throw of the dice" that "simply has to work" for the sake of the economy and the government. The message Brown and Darling were trying to get across is that the package is comprehensive - and that there are strings attached. But there is still a question mark over what action it will take on bonuses. Mr Darling described suggestions the government should cap them as "ridiculous".1015: The BBC's James Landale describes the rescue package as " big throw of the dice" that "simply has to work" for the sake of the economy and the government. The message Brown and Darling were trying to get across is that the package is comprehensive - and that there are strings attached. But there is still a question mark over what action it will take on bonuses. Mr Darling described suggestions the government should cap them as "ridiculous".
1014: It is also worth noting that when asked how far we were through the financial crisis, Mr Brown was less than specific - saying only that it was a "long haul".1014: It is also worth noting that when asked how far we were through the financial crisis, Mr Brown was less than specific - saying only that it was a "long haul".
1011: The overall message from the press conference seems to be that the recovery plan will be funded through increased borrowing but taxpayers will get their money back in the longterm. Mr Brown told reporters: "This support is on commercial terms. We expect to be rewarded for the support we provide."1011: The overall message from the press conference seems to be that the recovery plan will be funded through increased borrowing but taxpayers will get their money back in the longterm. Mr Brown told reporters: "This support is on commercial terms. We expect to be rewarded for the support we provide."
1010: The government's rescue package for the banking sector have failed to calm the markets so far. The FTSE 100 index of leading shares is down about 5% amid concerns about whether the government package would be enough to resolve the current crisis. Shares in the banks likely to access state funding were largely weak. Royal Bank of Scotland shares fell 8%, Barclays shares fell 9% while shares in Lloyds TSB and HSBC also dropped. However, shares in HBOS rallied strongly, gaining 28%.1010: The government's rescue package for the banking sector have failed to calm the markets so far. The FTSE 100 index of leading shares is down about 5% amid concerns about whether the government package would be enough to resolve the current crisis. Shares in the banks likely to access state funding were largely weak. Royal Bank of Scotland shares fell 8%, Barclays shares fell 9% while shares in Lloyds TSB and HSBC also dropped. However, shares in HBOS rallied strongly, gaining 28%.
1007: Treasury officials are now briefing people about the plan. The next scheduled appearances from Brown - and Darling - are in the House of Commons, with prime minister's questions at mid-day, followed by Mr Darling's statement.1007: Treasury officials are now briefing people about the plan. The next scheduled appearances from Brown - and Darling - are in the House of Commons, with prime minister's questions at mid-day, followed by Mr Darling's statement.
1002: The duo look pretty relaxed now, sharing a joke about a misheard question and then it's all over, the press conference finishes.1002: The duo look pretty relaxed now, sharing a joke about a misheard question and then it's all over, the press conference finishes.
1000: From BBC political correspondent David Thompson: Gordon Brown had to achieve three things with his press conference this morning: reassure the markets the government had a cogent and well-funded scheme for shoring up the banking system, reassure taxpayers they wouldn't be left out of pocket, hence his insistence that "there will be strings attached and conditions to be met", and reassure everyone that this package would work.Did he succeed? Well, the FTSE rallied - a bit - as he was speaking, it emerged during his press conference that the bailout would be in the first instance funded by borrowing and as for the the last bit? Let's wait and see.1000: From BBC political correspondent David Thompson: Gordon Brown had to achieve three things with his press conference this morning: reassure the markets the government had a cogent and well-funded scheme for shoring up the banking system, reassure taxpayers they wouldn't be left out of pocket, hence his insistence that "there will be strings attached and conditions to be met", and reassure everyone that this package would work.Did he succeed? Well, the FTSE rallied - a bit - as he was speaking, it emerged during his press conference that the bailout would be in the first instance funded by borrowing and as for the the last bit? Let's wait and see.
0959: Mr Darling says he is announcing the basic principles of the plan today - he will begin detailed talks with individual banks later. The government will not regulate banking bonuses - the FSA will deal will that, he says.0959: Mr Darling says he is announcing the basic principles of the plan today - he will begin detailed talks with individual banks later. The government will not regulate banking bonuses - the FSA will deal will that, he says.
0958: Britain is putting forward a Europe-wide plan to beef-up regulation of the banks later on Wednesday and Mr Brown believes there is some support for it. Mr Darling says it is "patently obvious" this is an international problem and he calls on the G7 to take a lead on boosting stability across borders.0958: Britain is putting forward a Europe-wide plan to beef-up regulation of the banks later on Wednesday and Mr Brown believes there is some support for it. Mr Darling says it is "patently obvious" this is an international problem and he calls on the G7 to take a lead on boosting stability across borders.
0957: Away from the press conference, the Conservatives and Liberal Democrats have backed the plan as outlined. We'll find out more details of any concerns they have at noon during the PM's questions clashes in the Commons.0957: Away from the press conference, the Conservatives and Liberal Democrats have backed the plan as outlined. We'll find out more details of any concerns they have at noon during the PM's questions clashes in the Commons.
0954: By e-mail:"The government is responding in a wild manner and not following economic principles." Artwell, London, UK0954: By e-mail:"The government is responding in a wild manner and not following economic principles." Artwell, London, UK
0953: Why did Britain not follow the US Paulson rescue plan? Mr Brown says he wants to restructure the banks rather than just taking one aspect of their business, the "toxic debt", out of the system.0953: Why did Britain not follow the US Paulson rescue plan? Mr Brown says he wants to restructure the banks rather than just taking one aspect of their business, the "toxic debt", out of the system.
0952: By e-mail: "The government cannot be allowed to bail out IceSavers. I'm sorry for those who have money in the failed bank, but you chose to invest in a foreign country." Russ, Cambridge, UK0952: By e-mail: "The government cannot be allowed to bail out IceSavers. I'm sorry for those who have money in the failed bank, but you chose to invest in a foreign country." Russ, Cambridge, UK
0951 Mr Brown is asked if he would apologise to the British people for the chaos of the past few days? No, is the answer. "You have got to get a restructuring programme right." It would have been no good to bring it out in instalments, he says.0951 Mr Brown is asked if he would apologise to the British people for the chaos of the past few days? No, is the answer. "You have got to get a restructuring programme right." It would have been no good to bring it out in instalments, he says.
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.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.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.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.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.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?