£37bn bail-out
Royal Bank of Scotland is to raise £20bn of new capital through a Government-guaranteed £15bn share issue and a £5bn Government cash injection.
RBS's under-fire boss Sir Fred Goodwin, who asked investors for £12bn earlier this year to help shore up the group's balance sheet, is to step down.
Sir Fred is to be replaced by Stephen Hester, who is currently the chief executive of British Land.
RBS chairman Sir Tom McKillop is also to step down next April.
RBS shares plunged 61% in value last week, but the £20bn of new funds will make it "one of the best capitalised banks in the world", Sir Tom said.
If no outside investors take any of the £15bn in new shares, the Government will own them and have a 57% stake in the bank. The Government is appointing three directors to the RBS board.
Lloyds TSB is to raise £5.5bn of new capital and is revising the terms of its acquisition of rival HBOS.
The combined HBOS and Lloyds TSB entity is expected to be about 40% Government-owned once the merger is complete. The Government is appointing two directors to the Lloyds TSB board.
The Government already controls two significant mortgage lenders - Northern Rock and Bradford & Bingley.
HBOS will raise £11.5bn of additional capital, including £3bn through preference shares with the Government.
Barclays said it is not turning to the Government for emergency funding, instead unveiling plans to raise more than £6.5bn from investors to help shore up its balance sheet.
The high street bank also said it will not pay a final dividend for 2008, saving the group £2bn.
As well as the £37bn bail-out, the Government has pledged to review the remuneration of senior executives.
This will be both for 2008, when ministers expect no cash bonuses to be paid to board members, and for long-term incentive schemes.
The Government will also be able to have a say on the appointment of any new independent non-executive directors and on dividend policy.
Banks have been told to commit to offer competitively-priced lending to homeowners and to small businesses.
They will also be expected to offer support for schemes to help people struggling with mortgage payments to stay in their homes.
HSBC is not involved in the Government's bail-out as it has already announced separate capital-raising measures to boost its UK operation.
The bail-out comes after EU leaders signed up to to Gordon Brown's blueprint for recovery.
An emergency summit in Paris pledged to guarantee lending between banks, and to step in with state funding to prevent major institutions collapsing.
The US came on board with similar action over the weekend after Mr Brown and Chancellor Alistair Darling set out their proposals last week.
Royal Bank of Scotland is to raise £20bn of new capital through a Government-guaranteed £15bn share issue and a £5bn Government cash injection.
RBS's under-fire boss Sir Fred Goodwin, who asked investors for £12bn earlier this year to help shore up the group's balance sheet, is to step down.
Sir Fred is to be replaced by Stephen Hester, who is currently the chief executive of British Land.
RBS chairman Sir Tom McKillop is also to step down next April.
RBS shares plunged 61% in value last week, but the £20bn of new funds will make it "one of the best capitalised banks in the world", Sir Tom said.
If no outside investors take any of the £15bn in new shares, the Government will own them and have a 57% stake in the bank. The Government is appointing three directors to the RBS board.
Lloyds TSB is to raise £5.5bn of new capital and is revising the terms of its acquisition of rival HBOS.
The combined HBOS and Lloyds TSB entity is expected to be about 40% Government-owned once the merger is complete. The Government is appointing two directors to the Lloyds TSB board.
The Government already controls two significant mortgage lenders - Northern Rock and Bradford & Bingley.
HBOS will raise £11.5bn of additional capital, including £3bn through preference shares with the Government.
Barclays said it is not turning to the Government for emergency funding, instead unveiling plans to raise more than £6.5bn from investors to help shore up its balance sheet.
The high street bank also said it will not pay a final dividend for 2008, saving the group £2bn.
As well as the £37bn bail-out, the Government has pledged to review the remuneration of senior executives.
This will be both for 2008, when ministers expect no cash bonuses to be paid to board members, and for long-term incentive schemes.
The Government will also be able to have a say on the appointment of any new independent non-executive directors and on dividend policy.
Banks have been told to commit to offer competitively-priced lending to homeowners and to small businesses.
They will also be expected to offer support for schemes to help people struggling with mortgage payments to stay in their homes.
HSBC is not involved in the Government's bail-out as it has already announced separate capital-raising measures to boost its UK operation.
The bail-out comes after EU leaders signed up to to Gordon Brown's blueprint for recovery.
An emergency summit in Paris pledged to guarantee lending between banks, and to step in with state funding to prevent major institutions collapsing.
The US came on board with similar action over the weekend after Mr Brown and Chancellor Alistair Darling set out their proposals last week.