The UK government is to inject up to £37bn of taxpayer cash into Royal Bank of Scotland (RBS) Lloyds TSB and HBOS.
The Royal Bank of Scotland
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.
The takeover of ABN Amro in October 2007 is said to have pushed the bank over the edge.
Refinancing
RBS announces an offer of ordinary shares to raise £15 billion of core tier 1 capital. The offer will be underwritten by HM Treasury at a fixed price of 65.5 pence per share.
Existing RBS shareholders will be invited to subscribe for all or part of their pro rata entitlements. New institutional shareholders may also be permitted to subscribe for new shares under the offer.
In addition, HM Treasury will subscribe for £5 billion of Preference Shares, further increasing RBS's Tier 1 capital ratio.
HBOS & Lloyds TSB
A further £17bn will be put into HBOS and Lloyds TSB.
Barclays
Barclays intends to raise £6.5bn without government help.
Government Stakes
The plans mean taxpayers will own about 60% of RBS and 40% of the merged Lloyds TSB and HBOS.
The Treasury investment in the banks forms part of the government bail-out announced last week.
