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Bail-out bid put into action

Three of Britain's biggest banks have been thrown a lifeline by the Government as part of a £37bn rescue.

The Royal Bank of Scotland could get up to £20m of funding while a further £17bn is to go into HBOS and Lloyds TSB whose merger is being renegotiated.

The Government could end up with a stake of about 40% in the merged firm and own about 60% of RBS. Barclays is planning to raise £6.5m from investors.

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