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BBC Radio 4's Money Box
Saturday 22 September at 1204 BST
On Radio 4 and Online
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Chancellor Alistair Darling says he is looking at ways of guaranteeing people's savings held by a bank or building society up to £100,000.
He told the Times newspaper it was a "bullet that needs to be bitten" and would be paid for by a levy on banks.
Mr Darling said he was considering a wide package of financial reforms - but added that they were in the early stages of development.
We asked John Howard, chairman, Financial Services Consumer Panel, for his reaction.
Further information:
Northern Rock: economic effect
Mervyn King called for better protection for bank savers
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It has been an extraordinary week in the financial world.
The Chancellor's comments about reviewing the banking system come days after the governor of the Bank of
England Mervyn King was forced to defend his handling
of the crisis when he gave evidence to the Treasury Select Committee.
He argued his ability to act had been constrained by the regulations governing the UK banking sector, and described the system of financial protection for savers as "wholly inadequate."
Has the government, the Bank of England and the Financial Services Authority now done enough to restore confidence?
What is likely to happen to UK interest rates and the wider economy?
We discussed the week's events with the leading economist Roger Bootle, managing director of Capital Economics
Further information:
Financial guarantee
Accounts opened after 19 September not be protected
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The government has given
more details about the scope
of the guarantee it offered to Northern Rock customers.
All accounts which existed at midnight on Wednesday 19 September would be covered.
The guarantee would include future interest payments, movements of funds between
existing accounts, and new deposits into existing accounts.
It would also cover accounts re-opened in the future by those who closed them between Thursday 13 September and Wednesday 19 September, but not any other new account set up after 19 September.
But campaigners who represent workers who have lost their pensions and those who lost money in Equitable Life have accused the government of double standards because of its refusal to offer them similar support.
Meanwhile Northern Rock told customers who withdrew money from their accounts during the last week that it will refund any charges they incurred or interest they lost as a result, as long as they put the same amount back into the same product by October 5.
We discussed these developments with pension campaigner Ros Altmann.
Further information:
Housing market
A report from the CML suggests that mortgage lending slowed in August
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What effect will the turmoil
of the last few weeks have on the housing market?
Some commentators have suggested house price growth could slow significantly over
the next 12 months. Some
even believe prices could fall.
Bob Howard reported from the Property Investment Show in
London's Docklands and we spoke to Liz Overend who runs the website pricedout.org.uk and David Lawrenson, who has his own collection of buy-to-let properties and is the author of "Successful Property Letting".
Further information:
OTHER NEWS
Carers allowance
The government has announced a concession which will benefit many carers who work part time.
Earlier this year Money Box highlighted that every time the minimum wage goes up in October many carers who work for 16 hours a week lose their entitlement to carers allowance.
The minimum wage increase takes their earnings a couple of pounds above carers allowance earnings threshold, which does not increase until April.
The government has said that this year, the earnings threshold for entitlement to carers allowance will go up on the same day that the new minimum wage rates take effect - so this should mean no one is caught out.
The change comes ahead of a much bigger review of carers allowance and all the support given to carers.
Further information:
BBC Radio 4's Money Box was broadcast on Saturday, 22 September 2007 at 1204 BST.
The programme was repeated on Sunday, 23 September 2007 at 2102 BST.
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