erday. Alistair Darling made the announcement to restore confidence following last months catastrophic run on Northern Rock. He said: This will ensure consumers can carry on their essential day-to-day banking and give them confidence their savings and deposits are safe and secure. Mr Darling wants to extend the pledge to cover up
to 100,000, but that would be costly and need legislation in Parliament. Stephen Haddrill, of the
Association of British Insurers, said: A limit of 35,000 is sensible and will cover well over 98 per cent of savers. Previously only the first 2,000 savings and 90 per cent of the next 33,000 were guaranteed by the Financial Serv新四不像玄机 ices Authority. Many queueing to close their Northern Rock accounts last month feared they would lose large sums as a result. The Government was forced to step in and guarantee deposits. The broader guarantee came as the Northern Rock share price dropped to a record low of 132
.1p, down from more than 12 this year. It sparked rumours of a cut-price rescue bid for the Newcastle-based mortgage lender, which has dropped billions of pounds in value to about 556million. Analysts predict it will make a 120million loss next year. Shadow chancellor George Osborne accused Mr Darling of piling confusion on confusion. And Lib Dem Treasury spokesman Vince Cable said: People who lost money from occupatio
nal pensions and Equitable Life policyholders have been treated less fairly than those with savings in Northern Rock.