Upbeat Brown message
GORDON Brown was set to praise the “resilience” of the UK’s financial system today while unveiling efforts to prevent a repeat of the Northern Rock crisis.
The Prime Minister was attempting to shore up his reputation for competent economic management by saying that although the so-called credit crunch in America had been a “wake up call” for the world, Britain had escaped without significant damage.
He was also set to announce new rules to give bank and building society customers extra protection for their savings, by fully guaranteeing sums up to £35,000.
Previously only the first £2,000 of people’s savings and 90% of the next £33,000 were guaranteed by the Financial Services Authority.
Chancellor Alistair Darling has said he wants up to £100,000 fully protected, but new laws will be needed to raise the threshold that far.
Mr Brown was due to give his upbeat message at a conference also being addressed by former Federal Reserve Chairman Dr Alan Greenspan.
