Another quick update on the British Banking bailout, namely the British Government injecting of £37 Billion into RBS, Lloyds and HBOS today:
(From BBC News): " Shares in Royal Bank of Scotland, Lloyds TSB and HBOS have fallen sharply despite the UK government's £37bn rescue package for the three banks.
The plan is meant to secure the banks' futures, but it also means profits will have to be shared with the government.
HBOS closed down 27.5%, Lloyds TSB was 14.5% lower and RBS down 8.4%.
In return for the injection of taxpayers' money, the government will also get a say in how the banks are run, including executive bonuses.
BBC business editor Robert Peston said the banks faced "absolute humiliation".
It would "count as perhaps the most extraordinary day in British banking history", he added.
Graphic courtesy of the BBC.
'Extraordinary times'
RBS will receive £20bn of taxpayers' money with a further £17bn to be put into HBOS and Lloyds TSB. Barclays intends to raise £6.5bn without government help….
...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.
HBOS will raise £11.5bn from taxpayers, made up of £8.5bn in ordinary shares and £3bn in preference shares, while Lloyds TSB is to get £5.5bn.
The money is conditional on the merger of the banks going through...
...Barclays has said it is to raise £6.5bn of new capital.
