Brown calls for calm in financial crisis

01/10/2008

Prime minister Gordon Brown has promised to improve the guarantees currently offered to savers, due to the ongoing economic crisis.

With stock markets showing dramatic rises and falls - and with analysts making dire predictions that more banks will fail in the credit crunch - savers have been tempted to move their money out of their banks.

They are concerned with being left out of pocket if the bank collapses.

In a bid to reassure these consumers, Mr Brown told the BBC that the guarantee level - in other words, the amount savers are insured for, is set to be raised from its current level of £35,000 to £50,000.

The government has endured tough times over recent days, taking over struggling lender Bradford & Bingley due to concerns over its financial stability.

It also helped to broker the takeover of HBOS by Lloyds TSB - after the firm suffered a similar loss of market confidence - and nationalised Northern Rock earlier this year.

"Wherever there has been a problem we have intervened and dealt with it," he said.

"We have got to get what's right and also what's reasonable and of course we look at every intervention that is necessary to take but I think people can see from our actions so far that depositors have been protected. No UK depositor has lost money."

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