U.K. Government Considers Part-Nationalization of Banks, FT Says

By Alan Purkiss

Oct. 7 (Bloomberg) -- U.K. Chancellor of the Exchequer Alistair Darling discussed last night with leading bankers a plan to shore up the banks by channelling taxpayers' money into them, in effect partly nationalizing them, the Financial Times reported, citing unidentified government officials.

Under the plan, the government would take stakes in banks requesting it to do so; the chancellor's team emphasized that the idea remains a contingency plan, unlikely to be put into effect this week, the newspaper said.

The meeting was also attended by Mervyn King, the governor of the Bank of England, and by Adair Turner, the chairman of the Financial Services Authority, the FT said.

Further meetings with the banks are expected next week, the newspaper said.