Banks' £37bn rescue plan unveiled

The government is to inject up to £37bn of taxpayer cash into Royal Bank of Scotland (RBS) Lloyds TSB and HBOS.

RBS is to raise £20bn, with chief executive Sir Fred Goodwin quitting the firm after his bank was forced to go to the Treasury for the bail-out.

A further £17bn will be put into HBOS and Lloyds TSB. Barclays intends to raise £6.5bn without government help.

The plans mean taxpayers will own about 60% of RBS and 40% of the merged Lloyds TSB and HBOS.

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