Apparently the £37bn package is not fully working.

Stocks are tanking all over the world. In the United Kingdom the £37bn bail out package for the three major banks of Royal Bank of Scotland (RBS), Halifax Bank of Scotland (HBOS) and Lloyds TSB is not fully working. The package has done really well to shore up the three banking groups but has been unable to get Libor down. This would free up lending.
I have just read a Forbes article and it mentioned the words "credit standards" and "weaker borrowers". This will see banks tighten up lending criteria on their clients both in the United Kingdom and in the United States. In the British housing market borrowers need a hefty deposit just to get going. The Halifax will be so much more cautious after suffering a near-death experience. While Northern Rock, despite its nationalised nature, is repossessing 32 homes a week.
www.searchaccountant.co.uk
There is talk that the mortgage portfolios of Northern Rock and Bradford and Bingley could be merged, which would help reduce costs. It might help if the Halifax injected a part of its mortgage book as well. This could reduce competition concerns about its merger with Lloyds TSB.
Royal Bank of Scotland has got a massive balance sheet and it will probably take time to bring under control. I wonder if the government knows what it has got into. A smaller institution might be a safer one, which would not bode well for employees.