by Calculated Risk on 10/13/2008 02:42:00 AM

UPDATE: From the NY Times: Britain Props Up Banks as Fed Leads Funding Effort

The Royal Bank of Scotland — once viewed as among the most solid of Britain’s Main Street institutions — announced it would seek around $34 billion to boost its capital as part of a bail-out devised by Prime Minister Brown and Mr. Darling and offered as a global template to resolve the crisis. The bank said the British government would buy preference shares worth around $8.5 billion and underwrite the rest. The deal could mean that the British government will own almost 60 percent of Royal Bank of Scotland along with more than 40 percent of HBOS and Lloyds TSB, which are negotiating a merger.

From MarketWatch: U.K. agrees cash injections for RBS, HBOS, Lloyds TSB

The U.K. Treasury said Monday that it's agreed to make capital investments in Royal Bank of Scotland (RBS) and, upon a sucessful merger, HBOS and Lloyds TSB totalling 37 billion pounds ($63 billion).... It's also requiring banks to maintain the availability of competitively-priced lending to homeowners and has the right to appoint new independent non-executive directors.

£20 is being invested in RBS. £17 in HBOS and Lloyds (the merger is essentially being forced at this point). It sounds like the U.K. will own 43% of Lloyds-HBOS. I haven't heard the percentage in RBS.