Safeguards for banks (From Swindon Advertiser)

Safeguards for banks

7:00am Thursday 4th December 2008 in

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Gordon Brown presented a slimmed-down legislative programme in a Queen’s Speech focused on measures to help Britain through the economic downturn.

The programme for the Prime Minister’s last full year before a general election includes 13 new Bills, along with a Constitutional Renewal Bill.

The package’s centrepiece is a Banking Bill designed to enhance financial stability through measures to reduce the likelihood of banks getting into difficulty and strengthen protection for depositors if they fail.

The Queen said ministers’ priority in the new parliamentary session will be “to ensure the stability of the British economy through the global economic downturn”.

The Government announced plans to help borrowers who are struggling to keep up with their mortgage repayments stay in their homes.

Under the scheme households that have temporarily lost their income will be able to defer mortgage interest payments for up to two years.

The initiative will cover mortgages worth up to £400,000, with the cost being borne by the Government.