U.K. Government Mum About Details Of Bailout Package For British Banks

October 7, 2008 11:40 a.m. EST

London, England (AHN) - The British government kept mum on details of an emergency bailout package to stop the financial hemorrhage of United Kingdom banks hit hard by the global credit crunch.

A financial rescue plan was hatched at the Monday meeting among British Chancellor Alistair Darling, Bank of England Governor Mervyn King, Royal Bank of Scotland Chief Executive Officer Fred Goodwin and representatives of Barclays and Lloyds TSB Group.

According to Bloomberg, a $79 billion (45 billion euro) package was planned to help ailing British banks, including RBS. The bank's shares dipped 39 percent following the downgrade by Standard & Poor of its credit ratings for the first time in almost 10 years.

Lloyds TSB stock, which recently purchased the Halifax Bank of Scotland, declined by over 20 percent. Meanwhile, shares of other British banks also registered double-digit percentage decreases.

According to analysts, the British government needs to inject $53 billion to $88 billion into the financially drained U.K. banks.

In an attempt to hush inquiries for details of the bailout plan, Darling told Parliament Monday night, "It would be irresponsible to speculate on the specifics of future responses... Providing a running commentary could add to uncertainty. All practical options must remain open to us."