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Page last updated at 07:35 GMT, Monday, 6 October 2008 08:35 UK

Treasury 'has a contingency plan'

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Banks all over the western world are failing, with German rescues following the $700bn US bail-out agreement. Business editor Robert Peston says there is a UK contingency plan, but Treasury Secretary Yvette Cooper says it would be "irresponsible to speculate". Sir Howard Davies, former deputy governor of the Bank of England, says that you would need Mystic Meg to work out what is going to happen in the financial markets.

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