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| First minister welcomes bank plan | First minister welcomes bank plan |
| (about 1 hour later) | |
| First Minister Alex Salmond has welcomed the £50bn rescue plan for UK banks as a "very substantial" set of measures. | First Minister Alex Salmond has welcomed the £50bn rescue plan for UK banks as a "very substantial" set of measures. |
| But he insisted more action was still needed, and repeated his calls for a cut in interest rates. | But he insisted more action was still needed, and repeated his calls for a cut in interest rates. |
| He also criticised "leaks and rumours" surrounding a fall in the Royal Bank of Scotland's share price on Tuesday. | He also criticised "leaks and rumours" surrounding a fall in the Royal Bank of Scotland's share price on Tuesday. |
| The UK Government is to invest up to £50bn in some of Britain's biggest High Street banks in return for shares. | The UK Government is to invest up to £50bn in some of Britain's biggest High Street banks in return for shares. |
| Speaking to BBC Radio's Good Morning Scotland programme, Mr Salmond said: "For the first time we've seen action to open up medium-term funding which has been one of the missing links in the previous attempts to help the situation. So that's welcome." | Speaking to BBC Radio's Good Morning Scotland programme, Mr Salmond said: "For the first time we've seen action to open up medium-term funding which has been one of the missing links in the previous attempts to help the situation. So that's welcome." |
| This is a substantial package and addresses one of the missing links in previous attempts to stabilise the system Alex SalmondFirst Minister | This is a substantial package and addresses one of the missing links in previous attempts to stabilise the system Alex SalmondFirst Minister |
| But Mr Salmond said more action was still needed to combat the credit crunch. | But Mr Salmond said more action was still needed to combat the credit crunch. |
| "I think there will have to be a decisive cut in interest rates to restore confidence in the real economy and I still think more assurance will be needed for depositors," he added. | "I think there will have to be a decisive cut in interest rates to restore confidence in the real economy and I still think more assurance will be needed for depositors," he added. |
| "But let's accentuate the positive shall we - this is a substantial package and addresses one of the missing links in previous attempts to stabilise the system." | "But let's accentuate the positive shall we - this is a substantial package and addresses one of the missing links in previous attempts to stabilise the system." |
| So far eight UK banks and building societies - including the Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB and Nationwide - have signed up to the scheme. | So far eight UK banks and building societies - including the Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB and Nationwide - have signed up to the scheme. |
| The government has insisted that financial institutions must cap executive pay, avoid excessive risk and support lending to home-buyers and small businesses. | The government has insisted that financial institutions must cap executive pay, avoid excessive risk and support lending to home-buyers and small businesses. |
| The Treasury has also agreed to guarantee any cash which banks borrow from one another - in an attempt to persuade them to start lending more freely. | The Treasury has also agreed to guarantee any cash which banks borrow from one another - in an attempt to persuade them to start lending more freely. |
| 'Direct negotiations' | 'Direct negotiations' |
| Mr Salmond said speculation surrounding the future of Royal Bank of Scotland (RBS) chief executive Fred Goodwin was "not helpful" while the stabilisation package was being announced. | Mr Salmond said speculation surrounding the future of Royal Bank of Scotland (RBS) chief executive Fred Goodwin was "not helpful" while the stabilisation package was being announced. |
| "The fact that it [RBS] came under such pressure yesterday is an indication of the very peculiar, unusual circumstances of leaks and rumours that were circulating around yesterday," he said. | "The fact that it [RBS] came under such pressure yesterday is an indication of the very peculiar, unusual circumstances of leaks and rumours that were circulating around yesterday," he said. |
| "I'm sure everybody who was in that process would have much preferred that hadn't happened when they look back - but it does show any institution can come under pressure." | "I'm sure everybody who was in that process would have much preferred that hadn't happened when they look back - but it does show any institution can come under pressure." |
| A body representing Scotland's financial services industry has welcomed the package to address "an increasingly volatile situation". | |
| Scottish Financial Enterprise chief Owen Kelly said: "It was vital that the government worked with the industry to produce this package, which should offer greater stability for the institutions and, importantly, increased confidence across the markets." | |
| Commenting on the rescue package, Scottish Lib Dem leader Tavish Scott urged the government to help keep HBOS as an independent bank. | Commenting on the rescue package, Scottish Lib Dem leader Tavish Scott urged the government to help keep HBOS as an independent bank. |
| He added: "This is a massive package of money for banks. Market and banking circumstances have changed enormously since the proposed Lloyds/HBOS merger was announced. | He added: "This is a massive package of money for banks. Market and banking circumstances have changed enormously since the proposed Lloyds/HBOS merger was announced. |
| "The government are now in direct negotiations with banks so they could make this happen. | "The government are now in direct negotiations with banks so they could make this happen. |
| "Keeping HBOS as an independent bank while strengthening RBS through this package would be positive economic news for Scotland. I urge the government to make this happen." | "Keeping HBOS as an independent bank while strengthening RBS through this package would be positive economic news for Scotland. I urge the government to make this happen." |
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