Reforms Come Pricey
Last week we reported on how the Northern Rock crisis may have contributed to a change in behaviour of banks and building societies turning to savings. Now, a decision by the Treasury to reform UK’s financial regulation system post the crisis is estimated to cost around GBP 3 billion. These reforms include a proposal that guarantees saver’s money within a week of any bank shutting down. The Treasury is also looking at raising the current guarantee, slated at GBP 35,000, triggering off a debate. So will banks use their 12 weeks of time to talk the Treasury out of these reforms? Read more here.