Global financial rescue package nears £3 TRILLION as the U.S. unveils Brown-style bail-out for struggling banks

America has followed in Britain’s footsteps by announcing the partial nationalisation of its leading banks, bringing the global effort to halt the world’s economic crisis to almost £3,000,000,000,000 (£3 trillion).

US Treasury Secretary Hank Paulson said he would plough $250billion (£143billion) into the country’s biggest banks in an attempt to safeguard the world’s leading economy from total collapse.

In addition, the U.S. government said it would temporarily guarantee $1.5 trillion (£856 billion) in new senior debt issued by banks, as well as insure $500 billion (£285 billion) in deposits in non-interest accounts, mainly used by businesses.

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All told, the potential cost to the government of the latest bailout package comes to $2.25 trillion (£1.28 trillion), triple the size of the original $700 billion (£400 billion) rescue package, which centered on buying distressed assets from banks.

The package follows similar deals in Britain (£500billion) and the EU (£1.16 trillion), bring the total world package to a staggering £2.94 trillion.

Bank of America, Citigroup, JP Morgan Chase and Wells Fargo are each expected to get $25billion. Goldman Sachs and Morgan Stanley are expected to be handed $10billion.

President George Bush defended the partial nationalisation, saying it will help restore stability to the banking sector and preserve free markets.

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