The British government (according to the London Times) has increased the funding for bank recapitalisation by another £25 billion. The Bank of England has raised the core capital ratio for banks from 6% to 9%. The London stock exchange may stay closed until the bank recapitalisations are done deals. Several bank CEOs are expected to go.
After their expensive dithering over Northern Rock, the British financial authorities are now showing Nelsonian dash and ruthlessness.
If it were done when ’tis done, then t’were well
It were done quickly.
Update – Sunday 2330h CET
The other EU countries now have committed themselves to large-scale bailout packages on the British model: equity capital (i.e. partial nationalisation), and guarantees for interbank loans. There’s not to be a European fund so pressures will mount on the weakest national banking systems. The laggards at the semi-failed Friday G7 meeting must have been the USA or Japan.