Enough safety?

New measures to increase depositor protection in the event of a bank getting into financial difficulty, have been proposed by the Chancellor Alistair Darling. They include the prospect of savers receiving some compensation within seven days of a bank closing, and for savings up to £50,000 to be fully protected. The proposals are intended to increase public confidence in the banking system following the near collapse of Northern Rock last year. While consumer groups have welcomed the suggested changes, they stress that they do not go far enough. Treasury Minister Kitty Ussher outlines the draft proposals which we will be discussing with Eric Leenders, of the British Bankers Association and Vera Cottrell, Which? Personal finance campaigner. Further information/related... [read full story]