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Chancellor Reconsiders Savings Pledge

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The Chancellor has staged an embarrassing climbdown by pledging to guarantee only the first £35,000 of savings held in British banks and building societies rather than the £100,000 he originally suggested

http://www.telegraph.co.uk/money/main.jhtm...nsavings101.xml

Just wondering how people will still believe the government, after so many u turns, once this goes they will not be able to control. It seems labor are not only putting our country into debt but also reducing the trust worthiness of the British government, trust which has taken hundreds of years to build.

Edited by crash2006

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http://www.telegraph.co.uk/money/main.jhtm...nsavings101.xml

Just wondering how people will still believe the government, after so many u turns, once this goes they will not be able to control. It seems labor are not only putting our country into debt but also reducing the trust worthiness of the British government, trust which has taken hundreds of years to build.

This is running on Sky and every time I see it it reminds me how much unfounded trust we put in banks! But Sky isn't running it as a U-turn story.

From the headline £100,000, Darling is now only going to protect an extra £3,500 of your money. Big deal.

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I wonder what'll happen next time there's a bank run? How about changing the HPC christmas meet to standing in a pretend queue outside the nearest Northern Rock branch to the BBC headquarters? ;)

Edited by ImA20SomethingGetMeOutOfHere

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With this new pledge you got to ask yourself what do the know that we don't and was the NR crash the tip of the iceburg.

to me it's a sure sign of trouble ahead

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Why don't they do their blasted sums before opening their mouths.

This reveals Darling for the faker he is. It was clear from the beginning that there was no way this could be afforded. If the FSCS scheme can't even 100% cover the existing lower amount, how could it be enlarged to cover 3x the amount?

It was all a case of 'things going pear shaped' the week before party conference and having to pump more water out of the ship in a hurry, even if it meant using a chamber pot.

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Guest Shedfish
The ABI had suggested a guarantee of just £30,000, arguing that level would be enough to cover 98pc of savers in the UK. Anything higher could encourage people to put their money into savings accounts, rather than investment products, the ABI said.

appaling. i'm lost for words. saving bad, speculation good. same with the equity ISA / cash ISA disparity

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Guest mSparks
http://www.telegraph.co.uk/money/main.jhtm...nsavings101.xml

Just wondering how people will still believe the government, after so many u turns, once this goes they will not be able to control. It seems labor are not only putting our country into debt but also reducing the trust worthiness of the British government, trust which has taken hundreds of years to build.

Heh, perhaps the Tories can win a snap election, all they need to do is give the people what they want: Immediately pull troops out of Iraq and Afghanistan, promise no war with Iran.

I mean, its not like they actually need to do it...

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Why don't they do their blasted sums before opening their mouths.

This reveals Darling for the faker he is. It was clear from the beginning that there was no way this could be afforded. If the FSCS scheme can't even 100% cover the existing lower amount, how could it be enlarged to cover 3x the amount?

It was all a case of 'things going pear shaped' the week before party conference and having to pump more water out of the ship in a hurry, even if it meant using a chamber pot.

Utter panic and chaos.

Labour destroyed the economy in the 70s and made themselves unelectable for a generation. Perhaps this will mean they will be out of power for two - perhaps ever.

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The Chancellor has staged an embarrassing climbdown....

The muppet should have resigned along with his corrupted, unelected, boss after the first bank run in living memory. Dream on, gone the days when politicians honourably step down after their failure. The new norm is to wait until getting voted out of power!

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Guest An Bearin Bui

This is what was so ridiculous about the announcement to guarantee deposits and overhaul the deposit insurance scheme at the time: it was all just spin. There was clearly no way that they could commit the equivalent of half the Defence budget to bailing out voluntary customers of a corrupt bank but they lied their way out of it to stop the so-called 'panic'. Neither could they afford to overhaul the deposit insurance scheme without support from the banks. This was all just spin to calm down the panicking masses and ensure the pensioners were on side before conference season.

What they never seemed to notice is that there was no panic - people with savings were legitimately removing them from a bank that had no future and still has no future.

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http://www.telegraph.co.uk/money/main.jhtm...nsavings101.xml

Just wondering how people will still believe the government, after so many u turns, once this goes they will not be able to control. It seems labor are not only putting our country into debt but also reducing the trust worthiness of the British government, trust which has taken hundreds of years to build.

Trust? :lol::lol::lol::lol::lol::lol::lol::lol:

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I wonder what'll happen next time there's a bank run? How about changing the HPC christmas meet to standing in a pretend queue outside the nearest Northern Rock branch to the BBC headquarters? ;)

How about some "flash queues" outside a nominated BS/bank ?

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Its from 2K 100% guaranteed to 35K 100% guaranteed with a view to making it 100K in the future. :lol:

It makes you wonder what do they know :o

Edited by Timil

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It's a significant change from a bank run point of view. If I had savings above £2k in NR I would have got money out because you're losing 10% after that. If all of savings up to £35k are protected then only those with savings of more may need to queue - which will be a much shorter queue (only 2% of savers come into this category).

That is if you trust the agencies will have enough dosh to cover everyone 100%...

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That is if you trust the agencies will have enough dosh to cover everyone 100%...

Thats the big one. If they don't have the cash to cover the previous arrangement, where did this extra money suddenly appear from.

Even just the case of NR deposits would put a substantial hole in UK government finances at the time when public borrowing has shot up to its highest for several years.

If/when the govt bail out NR depositors expect the £ to head south.

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Thats the big one. If they don't have the cash to cover the previous arrangement, where did this extra money suddenly appear from.

Even just the case of NR deposits would put a substantial hole in UK government finances at the time when public borrowing has shot up to its highest for several years.

If/when the govt bail out NR depositors expect the £ to head south.

they might peal off some of that crumbling gold? in the bank of Englands vaults

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http://news.bbc.co.uk/1/hi/business/7021414.stm

Just thought that Captain Darling should be given his say...

Of course this report by the BBC is in no way bias. Good to see the savings protection scheme has been 'extended'...

And I'll be betting all my money on it going up to £100k - cos Cap'n D has said he might do it. Subject to having a chat over a glass of something strong with 'the banks'.

If this had been reported properly, for the disasterous U-turn that it is, I think we'd have seen NR branches looking rather busy again...

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I wonder what'll happen next time there's a bank run? How about changing the HPC christmas meet to standing in a pretend queue outside the nearest Northern Rock branch to the BBC headquarters? ;)

I'm surprised the flash mob lot (http://en.wikipedia.org/wiki/Flash_mob) haven't caught onto this for a laugh, how's about standing outside evey A+L and B+B at exactly 1pm shouting "GIVE ME MY MONEY!!!"

:lol:

Not really though, that would just be irresponsible *does his stern face*

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I'm surprised the flash mob lot (http://en.wikipedia.org/wiki/Flash_mob) haven't caught onto this for a laugh, how's about standing outside evey A+L and B+B at exactly 1pm shouting "GIVE ME MY MONEY!!!"

:lol:

Not really though, that would just be irresponsible *does his stern face*

Brilliant idea!

I thought Captain Darling said everyones money was garuanteed in Northern Rock when he was on Newsnight? How hot are his pants now?

Typical Labour spin, what's the betting they never up the limit. As Sir Humphrey would say "After thorough consultation, in the fullness of time...."

Cheers,

Tim.

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