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Earlier, The U.K. government last week said it would invest at least 50 billion pound ($87 billion) to recapitalize Royal Bank of Scotland Group Plc, Barclays Plc and at least six others. Reports said Edinburg based RBS , market cap of 11.9 billion pounds, seeks 10 billion pound help from Investor and UK Government. A similar move is taken by Barclay;s Plc who asks for 3 billion pound cash call. U.K. Treasury officials have been working with the banks on the program and tomorrow will begin outlining details of a related plan to guarantee about 250 billion pounds of interbank loans though an insurance system.
The move would make the government the biggest shareholder in at least two banks, HBOS and Royal Bank of Scotland, the newspaper said on its website. It did not give a named source for its information.
The Sunday Times said the bank rescue could leave the government owning 70 percent of HBOS and 50 percent of Royal Bank of Scotland, and as a result it could take board seats at both banks and exercise control over future dividend payments.
Noted that British Finance Minister Alistair Darling, attending a G7 finance ministers' meeting in Washington, said on Saturday the government was to give more details early this week about its already announced 400 billion pound banking rescue plan.
The package of measures included a 50 billion pound cash injection, guaranteeing interbank lending by 250 billion sterling to help unfreeze wholesale markets, and extending a Bank of England scheme that swaps banks' risky assets for government debt to provide 200 billion pound of cash to the system.
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