WRAPUP 1-UK bails out banks with $64 bln as Europe acts

* Three Major British banks could take 37 billion pounds in government money to boost capital

* Report of French bank rescue plan worth 40 bln euros

* RBS Chief Executive Fred Goodwin resigns

* Banks to issue ordinary shares, government could end up with direct, majority in some

By Jodie Ginsberg and Steve Slater

LONDON, Oct 13 (Reuters) - Three major British banks could take 37 billion pounds ($64 billion) in government money to boost their capital, the UK Treasury said, as governments around Europe acted to boost confidence in the battered industry.

Royal Bank of Scotland (RBS.L) said in a statement it will boost its capital by 20 billion pounds, including the UK government taking 5 billion pounds in preference shares and 15 billion pounds underwritten by the government. [ID:nLD150830]

In Paris, a report by Dow Jones newswires said the French government would create a 40 billion euro ($55 billion) fund to take stakes in banks. The French presidential office declined to comment on the report.

HBOS HBOS.L and Lloyds TSB (LLOY.L) will also participate in the government scheme "upon successful merger", the Treasury said in a statement on Monday. [ID:nLD485629]

The UK Treasury laid out a series of conditions attached to the bailout including a commitment by the banks to lend to homeowners and small business at 2007 levels, limits on executive pay, and government input on new board appointments.

Barclays (BARC.L) said in its own statement it would boost its capital by more than 6.5 billion pounds but expected to do so without government help.

British banks will try to sell shares to existing investors, backed up by the government, which will buy the shares not taken up.

RBS chief executive Fred Goodwin became the highest profile British bank executive to lose his job to the crisis. He will be replaced by Stephen Hester, chief executive of British Land (BLND.L) and a former Abbey National banker.

The rescue plan could result in the government becoming the biggest shareholder, and even a majority investor, in Royal Bank of Scotland and a combined HBOS/Lloyds TSB.

(Editing by Andrew Callus)