Britain unveils 2nd bank bailout plan

The UK government stepped up its efforts to shore up the nation's ailing banking system and unclog the credit markets, sending shares in London higher even as the pound sterling slid against the euro and the dollar. Chancellor of the Exchequer, Alistair Darling announced the second British bank rescue in three months, proposing insurance to underwrite mortgage-backed debt and toxic assets, and reversing plans to shrink Northern Rock's lending. The British Treasury also said it will increase its stake in Royal Bank of Scotland Group Plc (RBS) as it converts the £5bn (US$7.4bn) of preferred shares it bought last year to ordinary stock. The UK government will extend a Bank of England (BOE) program to inject money into the financial system. "The likely impact of this announcement on the public finances will be mostly temporary, as investments will be held for no longer than is necessary to ensure stability and protect taxpayer interests," the Treasury said.