This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7653813.stm
The article has changed 10 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK bank savings guarantee urged | UK bank savings guarantee urged |
| (20 minutes later) | |
| UK Chancellor Alistair Darling is coming under pressure to follow Germany and guarantee private bank savings to ward off financial crisis. | |
| Lib Dem leader Nick Clegg said it was "completely unavoidable" after Germany became the third European country to instigate the measure. | Lib Dem leader Nick Clegg said it was "completely unavoidable" after Germany became the third European country to instigate the measure. |
| Greece and Ireland have already announced similar commitments. | Greece and Ireland have already announced similar commitments. |
| BBC business editor Robert Peston said he would be "immensely surprised" if Britain did not follow within 24 hours. | BBC business editor Robert Peston said he would be "immensely surprised" if Britain did not follow within 24 hours. |
| He said it would be "extremely difficult" for the UK not to follow Germany's lead - particularly after recent promises by Europe's leading economies to work together to tackle the financial crisis. | He said it would be "extremely difficult" for the UK not to follow Germany's lead - particularly after recent promises by Europe's leading economies to work together to tackle the financial crisis. |
| He added that without an offer of such an agreement of a 100% guarantee confidence could ebb away from the British banking system. | He added that without an offer of such an agreement of a 100% guarantee confidence could ebb away from the British banking system. |
| The Chancellor of the Exchequer Alistair Darling has repeatedly pledged that he will do "whatever is necessary" to maintain stability in the British financial system. | The Chancellor of the Exchequer Alistair Darling has repeatedly pledged that he will do "whatever is necessary" to maintain stability in the British financial system. |
| Last week, the Financial Services Authority said it would be raising the limit to the amount of deposits that are guaranteed should a UK bank go bust, from £35,000 to £50,000 per banking group from this Tuesday. | |
| Paris meeting | Paris meeting |
| Mr Clegg said Mr Darling is under mounting pressure to take further steps: "Germany is Europe's economic superpower. Where it leads, others are bound to follow." | Mr Clegg said Mr Darling is under mounting pressure to take further steps: "Germany is Europe's economic superpower. Where it leads, others are bound to follow." |
| That Germany is the first of the major European economies to provide 100% insurance to private savers shows just how fragile its banks have become Robert PestonBBC business editor Peston's view: Full protection nighSend us your commentsNo business rush to Irish banks | |
| He added: "Ireland's action last week to guarantee all deposits made a common European approach to deposit guarantees necessary. | He added: "Ireland's action last week to guarantee all deposits made a common European approach to deposit guarantees necessary. |
| "Germany's decision makes it completely unavoidable." | "Germany's decision makes it completely unavoidable." |
| The Lib Dems Treasury spokesman, Vince Cable, told the BBC the UK was likely to follow Germany's lead. | |
| But he said such action would be "irrational" as 98% of depositors had less than £50,000 in savings in any one institution and would not be affected. | |
| He said: "People are anxious, there is a danger that if one country, a major country like Germany offers blanket protection and others don't, you then get an out flow, so the British government will almost certainly have to follow suit. " | |
| Analysts believe Ms Merkel was forced into further action as the future of its second-largest mortgage lender Hypo Real Estate was found to be teetering on the brink of bankruptcy. | Analysts believe Ms Merkel was forced into further action as the future of its second-largest mortgage lender Hypo Real Estate was found to be teetering on the brink of bankruptcy. |
| Leaders of the major European economies met in Paris on Saturday for talks to hammer out measures to halt the global credit crunch. | Leaders of the major European economies met in Paris on Saturday for talks to hammer out measures to halt the global credit crunch. |
| Britain, Germany, Italy and France agreed to work together to support financial institutions and bring in more regulation. | Britain, Germany, Italy and France agreed to work together to support financial institutions and bring in more regulation. |