UK banks received emergency loans

[Legal Beagles]

The Bank England reveals it lent RBS and HBOS £61.6bn in emergency funding in October and November 2008.

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[enaid]

Re: UK banks received emergency loans

UK banks RBS and HBOS received emergency loans


RBS and HBOS have now fully repaid the loans, Mervyn King said

The Bank of England has revealed that it lent Royal Bank of Scotland (RBS) and HBOS £61.6bn in emergency funding in October and November 2008.
It is the first time that the central bank has detailed this support for the two institutions.
Bank governor Mervyn King told a parliamentary hearing it "was to prevent a loss of confidence spreading through the financial system as whole".
The money was repaid in full by January this year, he added.
In an additional statement, the Bank said it had carefully considered the public interest case for disclosure but decided that the assistance should only be revealed "once the Bank considers that the need for secrecy has ceased".
Mervyn King said the Bank was acting in its capacity as the lender of last resort.
RBS has since signed up for the government's Asset Protection Scheme while Lloyds Banking Group - which took over HBOS - has announced plans to raise capital from its shareholders.