The Government has confirmed it is pumping new capital into Britain's banks and building societies as part of a rescue package.

The £50 billion scheme will see taxpayers' money used to buy stakes in major banks in an attempt to halt the meltdown in the financial sector.

Prime Minister Gordon Brown said the deal should restore "confidence and trust" to the beleaguered banking system.

"Extraordinary times call for the bold and far-reaching solutions that the Treasury has announced," he said.

"Our stability and restructuring programme is comprehensive, it is specific and it breaks new ground.

"This is not a time for conventional thinking or outdated dogma but for the fresh and innovative intervention that gets to the heart of the problem."

Chancellor Alistair Darling said that the measures were in response to "extraordinary times".

"Those are absolutely critical so far as the system is concerned and we want to make sure that we can get the system going again," he said.

Full article here