Bank announces £50bn rescue package

A £50 billion rescue package for banks hit by the credit crunch was unveiled by the Bank of England today.

A £50 billion rescue package for banks hit by the credit crunch was unveiled by the Bank of England today.

The move will see banks able to swap their riskier mortgage-backed assets for Government bonds to shore up their finances.

"The scheme aims to improve the liquidity position of the banking system and increase confidence in financial markets," the Bank said.