The government have unveiled proposals for greater saver protection, with the banks and government alike eager to avoid a repeat of the Northern Rock crisis. Chancellor Alistair Darling launched a discussion paper focusing on increased guarantees for savers should a bank collapse.
With the government already having introduced 100% protection for savings of up to £35,000 in the wake of the recent crisis, the Chancellor has targeted the same level of protection on up to £100,000 of savings, though banks are unlikely to agree to such a high level.
Meanwhile, the Chancellor also defended the Financial Services Authority (FSA) and the Bank of England over their handling of the Northern Rock crisis, both of whom have come in for heavy criticism. Upon hearing the news that Northern Rock had been forced to agree emergency funding from the Bank of England over a month ago, there were huge queues of savers desperate to withdraw their money . Since September 14th, the Bank of England has lent £16 billion to the mortgage lender in emergency funds.
Darling Unveils New Banking Safety Net Proposals
Financial Services > e-banking > Banking news
Darling Unveils New Banking Safety Net Proposals
Mon, 22 Oct 2007
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