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Page last updated at 14:29 GMT, Monday, 13 October 2008 15:29 UK
Banking crisis: Your questions

By Dave Howard
Newsbeat politics reporter

British coins on 10 note

Nearly 40bn of taxpayers' money is being handed over to three of Britain's largest banks, as part of a rescue deal.

The Royal Bank of Scotland will get the largest chunk with HBOS and Lloyds TSB also taking some of the cash.

It's hoped it'll help the banks to lend money to each other again and start to get the economy back on track.

But what do you want to know about the banking crisis? Newsbeat has been in Leamington Spa to answer your questions.

Lenny's main gripe at the moment is loans. He says things aren't too bad at the moment but wants to know if his savings will be safe in the next few years or if he should keep his money in box underneath his bed.

Dave Howard said: "The short answer is, don't start stuffing your mattress. You only have to worry about your bank savings if you've got more than 50,000 in any one place. The government says it'll reimburse anyone who loses money up to that amount.

"But, if you do have more than 50,000, you might want to spread it around different banks to take advantage of that guarantee. Anyone who keeps wads of cash in their home is making themselves a target for burglary and you're not seeing the benefit of bank interest rates either."

Tina works in a pub and a shop and says there aren't many customers in either at the moment. She wants to know what will happen if share prices don't go back up again.

Dave Howard said: "It's pretty bad news if shares stay low. The value of your home, your savings, and your pension all depend on the cost of shares. But PM Gordon Brown reckons things should start getting better in the next few days. We've already seen an increase in share prices. That doesn't mean we're out of the woods but it's not a bad sign.

"The PM also reckons it's a good thing that taxpayers' money is being used to bail out banks. It means, when the banks are out of this mess and they're worth money again, we'll see some of that cash come back to us. We could even make a profit."

Christian cleans windows for a High Street bank in Leamington Spa. He says his contract has gone from weekly, to fortnightly to monthly. He wants to know who's to blame for the banking crisis?

Dave Howard said: "It's not so much who can we blame, but what. The problem is that there isn't enough money in the system to keep the wheels going round. Confidence is at an all-time low, so anyone who has any money, is keeping hold of it.

"But there are plenty of people who reckon bankers and fat cats have been taking too many big risks. When they succeed they make big money for themselves. But now, we're seeing what happens when things go wrong."

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