British govt to manage bailed-out banks at 'arm's length'

The British government will manage taxpayers' multi-billion-pound stakes in some of the country's biggest banks on an “arms length” basis rather than through direct boardroom control, it was revealed today.

Ministers originally signalled that were planning to appoint directors to the boards of the banks taking part in the £37bn (€43.2) rescue package, which include Royal Bank of Scotland, Lloyds TSB and HBOS.