INSTANT VIEW-Banks to take 37 billion pounds

LONDON (Reuters) - Three major British banks could take 37 billion pounds in government money to boost their capital, the government said on Monday.

Royal Bank of Scotland (RBS.L) will boost its capital by 20 billion pounds, while LLoyds TSB (LLOY.L) and HBOS (HBOS.L), who announced revised terms for their planned merger, will take 17 billion pounds between them.

Barclays (BARC.L) is not taking government money but said it would raise cash from investors and not pay a final dividend.

PRIME MINISTER GORDON BROWN

"I spoke to President (George W.) Bush last night after returning from Paris and we agreed the common ground for action in our two continents.

"I believe that only by global action can we fully restore the confidence that is needed and build the international financial order. And I will put forward proposals for major reform of the international institution at a speech in the City (of London) later this morning."

JONATHAN LOYNES, CAPITAL ECONOMICS

"The injections into some banks like RBS and HBOS are big enough to mean that it is very likely that they will be treated as fully nationalised for the purposes of the public accounts, thereby adding their liabilities, less liquid assets, to the published level of public sector debt. This would push the debt to GDP ratio well above 100 percent.

"... public borrowing and debt are already set to rise sharply as a result of the slowdown in the economy already seen. These extra developments merely increase the likelihood that, at some point in the future, very heavy tax increases or spending cuts will be required to get the public finances back into a sustainable position."  Continued...