Following breaking news in the US of a ’sweeping bailout’ costing hundreds of billions of dollars to clean up serious mortgage debt, Mr. Darling assured in an interview with Sky News that the situation in Britain was completely different.

He said, “We have managed to reach a commercial solution for two of our banks. In addition to that we have authorised a scheme … and I have made it clear that in excess of 100 billion pounds is available to help the banks.”

The SLS was set up last April was an initial period of 6 months but was extended this week until January 2009. Its purpose is to help bank gain additional liquidity by permitting them to trade their risky assets for secure Government paper.