UK edges towards bad-bank solution

Britain is considering adopting the bad bank model to buy toxic assets a little over a fortnight after London announced plans to guarantee banks' bad debt.

Alistair Darling, the chancellor of the exchequer, told a group of lawmakers on Tuesday: "It could be that in some cases it could be easier to do a good bank, bad bank split."

He did not detail the cases in which a bad bank would prove easier.

The British authorities on 19 January announced plans for an insurance scheme whereby the United K

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