Darling Said to Back Property, Business Loans at RBS, Lloyds
Chancellor of the Exchequer Alistair Darling today will extend a U.K. Treasury guarantee to insure hundreds of billions of pounds of toxic assets held by Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, according to people with knowledge of the plans.
The Treasury will underwrite existing commercial and residential property loans along with lending to small companies, said the people, who declined to be named before a formal announcement before markets open this morning.
Darling wants enough assets insured to make sure confidence in the banks is restored and lending can resume, the people said. While the final sum was still being negotiated late last night, it may be close to 500 billion pounds ($710 billion).