Taxpayers to guarantee 90% of toxic loans

Treasury protection will cover 90% of the credit losses which exceed an agreed 'first loss' amount, with each participating institution retaining exposure of 10%. Protection under the Scheme is offered, in the first instance, to UK incorporated authorised deposit-takers - including UK subsidiaries of foreign institutions - with more than £25bn of eligible assets. Each applicant to the Scheme must convince the Treasury: it is adequately capitalised and funded or has a realistic plan for accessing adequate capital and funding; it has a sustainable business model and delivery plan; its fundin...