UK Bailout

Many people are wandering why the United Kingdom government decided to deposit nearly $ 90 billion into banks, while lending back $ 350 billion to the taxpayers. When it came time to make the final decision, the UK government realized they had no choice. Panic in the markets is at a steady increase, while banking shares have been at a steady downfall. British Prime Minister Gordon Brown, along with the help of Chancellor Alistair Darling, knew that something must be done immediately to bring back the confidence within the banking industry. Urgent action was agreed upon, and a bailout plan was put into action. 

The UK government created a plan that consisted of funding the banks with over $ 90 billion, in exchange for shares, in hopes of reassuring the markets that the credit crunch would be survived. The loans received from the banks would total over $ 350 billion and would be used to stabilize the economy.

Link (submitted by Will)