Britain’s beleaguered banks were on Sunday night preparing to accept a new bail-out as government officials put the finishing touches to a plan designed to end uncertainty about future losses and stimulate the flow of credit to consumers and companies.
Alistair Darling, chancellor of the exchequer, spoke to senior executives of Britain’s largest banks to outline the plan, which will see the government insure banks against potential losses on risky loans in return for firm commitments to increase lending to credit-starved consumers and businesses.
