Europe takes steps to save lenders

The UK government may become the majority shareholder of Royal Bank of Scotland Group Plc and HBOS Plc as it injects as much as 37 billion pounds into the nation's banks to battle the credit freeze.

Britain decided to purchase stakes in Edinburgh-based RBS and HBOS and Lloyds TSB Group Plc of London as governments across Europe took unprecedented steps to prop up financial institutions and unlock lending. European leaders, who initially eschewed a coordinated approach to the crisis, announced plans on Monday to guarantee new bank debt and use public funds to keep troubled banks afloat, even by taking control of the institutions.

RBS will get 20 billion pounds, while HBOS and Lloyds TSB will raise 17 billion pounds between them, the companies said yesterday.