100% of ALL deposits to be guaranteed now?

Fella

This City AM article seems to be suggesting so:

http://88.208.249.143/index.php?news=8108

In a bid to get it onto the statue books by the end of the week, the Banking (Special Provisions) Bill — announced to Parliament by chancellor of the Exchequer Alistair Darling yesterday — will protect all banks against collapse, a Treasury spokesman told CityA.M..
The extension of the guarantee avoids claims that the government is anti-competitively favouring one bank above others.

tawse57

I ruddy well hope so - fed up having to move my house sale money round and round and into more risky banks just to stay under the 35K limit.

Aegis

The big trouble with this, of course, is that consumers will have to pay for increased cover...

tawse57

Having read that article I see no mention of the 100K - I suspect the Government has conveniently decided to forget about that.

Mikeyorks

tawse57 wrote: »

I see no mention of the 100K

100% ... not £100k? It's merely to show even handedness and keep the EU mandarins off the Govt backs temporarily.

The £100k potential guarantee is still slowly wobbling it's way among the offices of Treasury / Whitehall

amcluesent

The whole banking system is teetering and, IMHO, having HMG give you fiat money run-off the printing presses that afternoon is no 'guarantee'. Have a look at http://www.taxresearch.org.uk/Blog/2007/09/17/northern-rock-the-questions-needing-answers/ and http://ftalphaville.ft.com/blog/2007/10/08/7902/the-uncharitable-core-of-northern-rock/ and be very worried.

Ingot gold is the only guarantee worth having now.

Fella

Aegis wrote: »

The big trouble with this, of course, is that consumers will have to pay for increased cover...

If true, there are many troubles with this....

It's a horrible mess.