Financial Times FT.com

Governments eye new tools for credit crisis

By Peter Thal Larsen

Published: January 16 2009 20:11 | Last updated: January 16 2009 20:11

When governments in Europe and the US unveiled co-ordinated bail-outs of their banking industries last October, politicians and regulators rightly believed they had narrowly avoided a collapse of confidence of the financial system.

But this week it became clear governments will have to take on even more risk from the private sector if they are to restore the flow of credit to the economy.

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