Details of UK bank bailout finalised with city experts

Gordon Brown has been keen to push the Eurozone to follow the British model and organise a banking bail-out.

As the UK Prime Minister met his European counterparts in Paris yesterday, last minute negotiations were continuing in London to finalise the details of the recapitalisation plan.

“We value and celebrate hard work and effort, we celebrate responsible risk-taking but not irresponsibility. And where there has been irresponsibility, it’s our duty to take the action to root it out so it doesn’t happen again.” said French and current EU President Nicolas Sarkozy.

Sources now say an announcement is due before markets open in London this morning.

Up to 63 billion euros of taxpayer’s money is up for grabs by four major banks. Some are trying to raise extra capital from shareholders to limit the need for government funds.

Meanwhile, Lloyds TSB wants the terms of its takeover of HBOS renegotiated so it can pay less.

Officials have warned that if an agreement is not reached, the deal could fall apart.

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