Treasury

The UK and US Governments will pump more capital into nine ailing financial institutions than the entire GDP of the oil-rich United Arab Emirates.

Living Time has warned the Treasury not to use the current economic turmoil as an excuse to drop the promised OMO update from the forthcoming Pre-Budget Report.

HSBC has been joined by four other UK banking giants today in rejecting any Government capital assistance, following this morning's £37bn bail-out package for Lloyds TSB, HBOS and RBS.

The Government will pump £37bn into ailing banking giants RBS, HBOS and Lloyds TSB.

The Treasury has assembled an expert liaison group to help prepare legislation for key proposals in the Banking Bill.

The Treasury Select Committee is to hold a hearing on the economics of the housing market.

The Government will come under pressure today to rewrite its controversial plans for dealing with ailing British banks as some of the City's most powerful fund managers claim that the new rules would ride roughshod over their rights, The Times reports....

Chancellor Alistair Darling is understood to be close to temporarily abandoning the Government's fiscal rules rather than changing them when he presents his pre-Budget report later this autumn, The Independent reports.

Alistair Darling's future was in question last night after Whitehall insiders said that he could be involved in an imminent Cabinet reshuffle, The Times reports.

Local councils have called for the Treasury to allow them to offer competitive mortgage deals in a bid to revive the housing market.