Deposit Worries Hit Sterling
September 25th, 2007Via: Financial Times:
Sterling took a hit on Tuesday as worries over UK deposit protection raised fresh concerns over the health of the UK financial system in the wake of the recent run on Northern Rock, the troubled mortgage lender.
Analysts said reports that the UK’s deposit protection scheme might not be enough to pay for the government’s plan to guarantee consumers’ deposits up to £100,000 pounds weighed on the currency.
The UK’s Financial Services Compensation Scheme’s resources were estimated at only £4.4m – compared with a comparable fund of $49bn in the US.
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