King: gap in bank reforms puts savers' cash at risk

The Telegraph reports Sir Mervyn King said protection for depositors whose savings temporarily rise above £85,000 - the current compensation limit - was needed or the government would be under pressure to resort to a state bailout again. Paul Tucker, the bank's deputy governor and man tipped to take over from King next year, said it was a "huge issue" which was unresolved. Tucker told MPs yesterday: "The best laid plans [could] get blown up." The Telegraph reports new plans would avoid a taxpayer bailout by forcing bondholder to take deep losses if a bank is on the bring of collap...