UK The British government is about to write a huge insurance contract for the banking sector. For ministers, the gamble is that their willingness to protect banks against big losses will in itself make it less likely the insurance will ever be needed.
Government officials were on Sunday night locked in meetings with senior executives of the UK’s largest lenders to spell out a variety of schemes that are expected to be unveiled on Monday. The measures are designed to give banks and large companies access to funding in the wholesale markets, while stimulating the flow of credit to consumers and corporations in an effort to stave off a prolonged economic slump.
