Saver rescue plan 'seriously flawed' - papers 7 July

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The banking industry has attacked the Government's plan to pay out part of a depositor's savings within a week of a bank going bust, The Telegraph reports.

Banking sources said this and other aspects of the Government's plan to enhance safeguards on deposits were far too optimistic. Chancellor Alistair Darling last week revealed that the Government was planning to increase its guarantee on depositors' savings to £50,000 from the existing £35,000 cap. Banks have broadly supported the Government's plans, which would see taxpayers initially foot the bill for paying out deposits. But privately they say the proposal is seriously flawed. BRADFORD & BINGLEY will update the City on its current trading when it issues a prospectus for a £400m fun...

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