This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7666570.stm

The article has changed 18 times. There is an RSS feed of changes available.

Version 0 Version 1
RBS to raise £20bn in new funding UK banks' £37bn bail-out unveiled
(10 minutes later)
Royal Bank of Scotland (RBS) is to raise £20bn of new money - including £5bn directly from government. The government is to inject up to £37bn of new capital into Royal Bank of Scotland, Lloyds TSB and HBOS.
It hopes to raise £15bn by issuing new shares - though the Treasury has said it would underwrite the offer if - as many suspect - it was unsuccessful. Royal Bank of Scotland (RBS) is to raise £20bn - with the government buying £5bn of preference shares and underwriting £15bn of ordinary shares.
RBS chief executive Sir Fred Goodwin has quit the firm after the move.RBS chief executive Sir Fred Goodwin has quit the firm after the move.
Taxpayer cash is also expected to be injected into HBOS and Lloyds TSB - though Barclays has announced plans for alternative funding. A further £17bn of taxpayer cash will be injected into HBOS and Lloyds TSB - Barclays has announced plans to raise £6.5bn without government help.
The announcement means taxpayers will end up owning around 60% of RBS and about 40% of the merged Lloyds TSB and HBOS, BBC business editor Robert Peston said.
He said the announcement would "count as perhaps the most extraordinary day in British banking history".
As a condition of the deal, the government has insisted that senior directors should get no cash bonuses this year, with future bonuses to be paid in the form of shares - a move aimed at encouraging management to take a more long-term approach.
Dividend cancelled
Barclays has struck a deal to raise £6.5bn of new capital - saying it was confident of raising that from shareholders and investors, rather than going to the government - meaning it will not have the government influencing its day-to-day decisions.
It also said it would abandon its dividend for the second half of this year, to save £2bn.