Britain to raise deposit insurance
- Share via
Britain’s chancellor of the exchequer, Alistair Darling, aiming to restore consumers’ confidence in the nation’s banking system, will extend a government-backed guarantee for cash deposits of as much as $70,000 (35,000 pounds) in all accounts.
His announcement today will spell out details of how the government would reimburse savings in any failed banks. Darling said Sept. 17 that he would introduce the plans to stop a run on deposits at Northern Rock bank.
Currently, the banking-industry-funded program pays back 100% of the first 2,000 pounds of savings lost in a bank failure and 90% of deposits up to 33,000 pounds.
Northern Rock customers ignored assurances from Chief Executive Adam Applegarth and Darling that there was no need to withdraw money after the central bank provided emergency funding on Sept. 14. Savers lined up outside the bank to withdraw about 2 billion pounds of deposits until Darling’s statement on Sept. 17.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
More From the Los Angeles Times
Podcasts
John Orr was a renowned fire investigator who was also a prolific arsonist, and whose thinly veiled novel helped to convict him. In this episode we hear from the fire captain who first suspected him—and from Orr himself.
Madison McGhee is joined by legendary Dateline host Josh Mankiewicz and esteemed L.A. Times Reporter Richard Winton as the three of them dive into all-things Menendez Brothers, the good, the bad, and the still unknown.
NPR climate editor Sadie Babits talks about why the media has long overlooked the climate crisis, and how that’s starting to change.
