by Calculated Risk on 10/11/2008 04:26:00 PM

From The Times: State to save HBOS and RBS

THE government will tomorrow launch the biggest rescue of Britain’s high-street banks when the UK’s four biggest institutions ask for a £35 billion financial lifeline.

The unprecedented move will make the government the biggest shareholder in at least two banks. The Royal Bank of Scot-land (RBS), which has seen its market value fall to under £12 billion, is to ask the government to underwrite a £15 billion cash call. HBOS, which is Britain’s biggest provider of mortgages, is requesting up to £10 billion. Lloyds TSB, which is in the process of acquiring HBOS, and Barclays require £7 billion and £3 billion.
...
The British bank rescue could leave the government owning 70% of HBOS and 50% of RBS. ... Further capital is also available and the Treasury has increased the total amount to £75 billion.

Here is the WSJ article: U.K. Banks to Announce Details of Plan

The Times article also comments on Morgan Stanley:

Separately, the future of Morgan Stanley, the American investment bank, is also in doubt today ... Mitsubishi UFJ Financial Group is reviewing the terms of a $9 billion (£5.3 billion) capital injection into the bank and may launch a takeover.