Gordon Brown faces intense pressure today to guarantee all bank saver deposits following Germany's surprise back-flip to safeguard 100% of public money.
German Chancellor Angela Merkel moved to shore up public confidence in the country’s banking system last night, after renegotiating a €50bn package to save its second largest commercial property lender Hypo Real Estate. The unlimited guarantee pledge is up from its previous €20,000 protection. The UK Government is being urged to take similar action, with industry heavyweights wanting guarantees for the full £2trn of UK depositor money. From tomorrow, the Financial Services Compensation Scheme safeguards increase from £35,000 to £50,000. Germany, which reversed its earlier decision not to ...
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