Brits go socialist in a big way.

[Rod]

9:40 AM MDT, Fox News is reporting that the British government is preparing to nationalize ALL major banks in their country. Strap in, we're headed for a REALLY bumpy ride.

[FelixEstrella]

Uh ... how? They plan to buy the assets of all banks? With what? Will be good the the $ vs. lb. thing. Time for that cheap vacation in the UK.

[Erik]

They'll get preferential shares in banks that want to get capital from them

http://news.bbc.co.uk/2/hi/business/7658277.stm

The UK government has announced a package of measures aimed at rescuing the banking system that could add up to £500bn ($880bn).

It will initially make extra capital available to eight of the UK's largest banks and building societies in return for preference shares in them.

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The key points of the plan are:
- Banks will have to increase their capital by at least £25bn and can borrow from the government to do so.
- An additional £25bn in extra capital will be available in exchange for preference shares.
£200bn will be available in short-term loans from the Bank of England, up from £100bn.
- Up to £250bn in loan guarantees will be available at commercial rates to encourage banks to lend to each other.
- To participate in the scheme banks will have to sign up to an FSA agreement on executive pay and dividends.

<--->

The lenders that have confirmed their participation in aspects of the scheme are Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Royal Bank of Scotland and Standard Chartered.

The Treasury said that other banks and building societies would be able to apply for inclusion in the plan.

Preference shares pay a fixed rate of interest instead of a dividend, which has to be paid before other shareholders receive anything, but they do not carry voting rights.

Taxpayers may even end up making a profit from the shares, but that is by no means guaranteed.

Robert Peston said there would be strings attached for banks that take the government money.

[SoupOrMan]

I'm sure there are plenty who are angry enough to do something about this, but aren't armed enough.