Morning Markets: FTSE falls despite £50bn UK rescue package

The FTSE 100 opened 4.5% lower this morning despite plans announced by the UK Government to inject ...

The FTSE 100 opened 4.5% lower this morning despite plans announced by the UK Government to inject £50bn into the banking system and to partially nationalise the banks. As past of the rescue package, the Treasury will buy preference shares in banks for the amount of £25bn and the Bank of England will make at least £200bn for banks to borrow as part of a special liquidity plan. The Government will also provide a guarantee £250bn to help refinance debt. Chancellor of the Exchequer Alistair Darling said in a statement: “The necessary building blocks to allow banks to return to their basic...