Size of Britain's bailout questioned

LONDON, Oct. 15 (UPI) -- A $64 billion rescue offered to three banks in Britain may not be enough to stabilize the British banking system, the Treasury Select Committee chairman said.

"It's a minefield we are tiptoeing through. That $64 billion might not be enough," committee Chairman John McFall said, The Times of London reported Wednesday.

On the other hand, McFall, who welcomed the package, said taxpayers were "very concerned about the scale of this investment."

"We are seeing a process of de-leveraging. We don't know what problems that might throw up," he said.

Royal Bank of Scotland shares fell 1 percent Tuesday, while Lloyds TSB and HBOS shares also fell, down 7 and 5 percent, respectively.

As share prices fall, analysts predicted the terms of the government's deal to purchase bank shares will have to be renegotiated, the Times said.

Lloyds was reportedly lobbying to change the part of the agreement that bans paying shareholder dividends until the government's preference shares are redeemed, the newspaper said.