Billions may be needed as lending squeeze tightens
Alistair Darling has been forced to consider a second bailout for banks as the lending drought worsens.
The Chancellor will decide within weeks whether to pump billions more into the economy as evidence mounts that the £37 billion part-nationalisation last year has failed to keep credit flowing. Options include cash injecti ons, offering banks cheaper state guarantees to raise money privately or buying up “toxic assets”, The Times has learnt.
The Bank of England revealed yesterday that, despite intense pressure, th...