Taxpayer takes a stake in RBS, HBOS and Lloyds TSB.

The UK government has confirmed its plans to inject £37bn in three of the best known High Street banks, RBS and the soon to merge HBOS and Lloyds TSB.

The government will take a majority stake in RBS, buying £5bn of preference shares and underwriting £15bn of ordinary shares. RBS chief executive Fred Goodwin has resigned.

A further £17bn of public money will be injected into HBOS and Lloyds TSB.

Barclays has announced plans to raise £6.5bn without government help.

The package comes with strings attached. Bank executives will not receive bonuses this year, and the banks involved have agreed to continue to offer credit to homeowners and small businesses.