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Page last updated at 17:02 GMT, Wednesday, 11 March 2009

Treasury takes 65% Lloyds stake

Lloyds TSB
BBC Radio 4's Money Box

Saturday, 7 March 2009

at 1204 GMT

On Radio 4 and Online

The government has announced it is taking a majority stake in Lloyds Banking Group, committing to lending an extra £28bn.

In effect this means taxpayers now own half the country's major banks.

LloydsTSB, Halifax, Bank of Scotland, Royal Bank of Scotland, Natwest and Northern Rock are all now owned by the state.

We discuss the implications for you with Alistair Milne, lecturer in banking and finance at the Cass Business School and Stephen Timms, Labour MP of East Ham.

Related stories / further information:

Bank begins quantitative easing

The Bank of England
Will printing money stimulate the economy?

The Bank of England's Monetary Policy Committee did what everyone expected on 5 March and dropped interest rates by another half point.

Official rates are now a mere 0.5% - the lowest in the Bank's 315 year history.

But it did something else too - it released £75bn of cash for quantitative easing.

So what exactly is quantitative easing and will it have the desired effect?

We ask Stephen Gifford, chief economist at accountants Grant Thornton.

Further information/related stories:

Savings and bonds

A pot with coins flying out of it
We examine the implications for your savings

What does the interest rate cut mean for savers?

According to official figures, a staggering £2.3bn was withdrawn from bank deposit accounts in January; £390m was withdrawn from building society accounts.

One of the things people have been doing is switching into corporate bonds - with £1bn being ploughed into them in January.

A corporate bond is effectively an IOU issued by companies on which they pay interest and when they mature, return the capital.

But crucially if the company goes bust an investor can lose everything.

Kevin Mountford of joins us to discuss what is on offer and we speak to Brian Dennehy from IFA Dennehy Weller and Co.

Further information/related stories:

Airline compensation

An XL plane
The leisure group collapsed leaving customers out of pocket

Thousands of people are still waiting for compensation following the collapse of leisure group XL last September.

Most customers who booked through an ATOL travel agent believed getting their cash back would be straightforward.

But anyone who paid on a credit card - even if it was just the deposit - has been told an appeal to their bank is the only way they may get recompense.

Bob Howard reports.

Further information/related stories:

Shoppers in New York's Times Square
Customers face a fee from 6 May

Overseas card use

Customers of Nationwide will soon be charged a fee for using their cards outside of Europe.

Until now Nationwide has absorbed the fee levied by Visa - but that is all about to change.

We speak to Martyn Hocking, Editor of Which? about the development.

Further information/related stories:

BBC Radio 4's Money Box was broadcast on Saturday, 7 March 2009 at 1204 GMT.

The programme was repeated on Sunday 8 March 2009 at 2102 GMT.

Money Box



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06 Mar 09 |  Moneybox

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