Government launches toxic asset insurance for banks

By Sumeet Desai and Matt Falloon

LONDON (Reuters) - The government launched a scheme on Thursday expected to insure more than 500 billion pounds worth of banks' toxic assets to try to spur lending and avoid having to fully nationalise top lenders.

British retail banks with more than 25 billion pounds in eligible assets will have until March 31 to join the Asset Protection Scheme which will run for a minimum of five years and cover them against huge losses on their riskiest assets.

Link to the full article: Reuters