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How will the British banks react?

By James Blake

Updated on 30 September 2008

It's all eyes on the banks, as Britain's markets brace themselves for more chaos in America. James Blake reports.

After big falls in the US and Asian markets overnight following the rejection of the Bush Administration's $700bn rescue package, another big drop had been feared in share values in Britain.

But there has been no bloodbath, but a minor rally on the London markets this morning.

So it's a case of so far, so good but the City's still on tenterhooks.

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