Hank Paulson urges Britain to set up bank bail-out fund

The British government is under increasing pressure to set up its own fund to bail-out banks holding mortgages on which homeowners are defaulting on their balance sheets.

US Treasury Secretary Hank Paulson has confirmed for the first time that he has talked with a number of central banks around the world on the subject in order to persuade other countries to follow America's proposed $700bn (£377bn) bail-out fund.
Mr Paulson and his officials are believed to have contacted the Bank of England and HM Treasury in this regard, but the British government so far seems reluctant to do so.
In his speech to the Labour conference, Prime Minister Gordon Brown said he would be discussing the ongoing financial crisis with world leaders during a trip to the United Nations General Assembly in New York later this week, but made no reference of any plans to help British banks.
A City analyst estimated a UK version of the US bail-out fund would need to be approximately £20bn in size to rescue 75pc of the UK's outstanding non-prime mortgages.
One of the reasons the British government may be reluctant to get involved is because foreign banks with large American operations – such as Barclays and the Royal Bank of Scotland – will be eligible for the scheme.

The Daily Telegraph

Go and see your M.P NOW! Tell Him NO WAY!!! Write, email, fax but preferably go and see him. Do It Now Before This Goes Any Further !