FSCP recommends unlimited savings compensation
Unlimited compensation should be offered by the government to savers whose bank collapses, it has been suggested.The Financial Services Compensation Panel (FSCP) made its recommendations yesterday, as bank stocks suffered severe declines on the global markets.Two US financial firms, Lehman Brothers and Merrill Lynch, have ceased trading after being hit hard by the credit crunch.These events might lead to savers withdrawing their money from their banks, particularly as just £35,000 per account is guaranteed against collapse.David Lipsey, chairman of the FSCP, commented: "The purpose of any banking compensation scheme is to give consumers confidence that money they entrust to a bank, is safe in the event of the bank failing. "For a compensation scheme to give that confidence, it must be clear to consumers so they understand how, when and to what extent their savings will be protected."
Share this..
Related stories
Tesco looking to take UK banking sector by storm
While the news that Tesco is looking to open 30 bank branches within supermarkets around the UK has not necessarily registered on the radar of every financial adviser in the UK, it could mark the start of a concerted effort to create a position in the UK banking sector. Tesco already has one banking operation in Glasgow where customers are able to purchase insurance, apply for credit cards and loa...
Read MoreHow do you balance company and worker pension regulations?
As we covered in one of our earlier post, the CBI has recently been very vocal in support of UK businesses and a change in pension regulations. Historically companies were able to take a more long-term approach to their pension fund investments which allowed for short-term fluctuations such as recessions, as well as the boom times. However, in a bid to try and balance out and protect both pension...
Read MoreBank of England dampens hope for swift economic recovery
In a bitter blow to Alistair Darling's ever optimistic forecasts for the UK economy the Bank of England has today revealed a sharp re-adjustment in economic forecast for the short to medium term. Alongside a suggestion that the UK economy is still struggling to pull out of its downward spiral Mervyn King, the Gov of the Bank of England, has confirmed that in his opinion any recovery would be "rela...
Read MoreCharity begins at home
The announcement that donations to Oxfam have suffered a fall of around 12% this year is bad news for the charity sector but in many ways inevitable. As the UK recession continues to bite, more and more of the UK population are taking on the philosophy that "Charity begins at home". However, a significant reduction in charitable donations will have a knock-on effect to many local communities as th...
Read MoreUK car scrapping programme proving a success
Against the majority of opinion in the UK, the UK government's car scrappage program has proved to be highly successful in its first month with over 35,000 cars replaced so far. As popularity of the scheme continues to increase there are hopes that this could end the downward spiral experienced by the UK car manufacturing industry over the last few months. However, there is one fly in the ointment...
Read More