Chancellor: Buck stops here
Chancellor Alistair Darling reaffirms government's commitment to do all it can to support UK banks
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German chancellor Angela Merkel has announced the German government will guarantee all private savings accounts, as the country's second largest mortgage lender struggles for survival. |  |
Monday, 06, Oct 2008 04:53
Alistair Darling has told MPs that the government is committed to doing all it can to support UK banks and that the ultimate responsibility rests with him.
In a speech in the House of Commons the chancellor reaffirmed the government would take whatever measures necessary.
"I have the responsibility to support the banking system," Mr Darling said, adding that banking was at the heart of how the nation runs on a day-to-day level.
"Our priority is to maintain stability," he said. "It is essential we take action to support the system as a whole and are ready to intervene when necessary."
Mr Darling pledged further resources will be made available to give the financial system sufficient liquidity but failed to give any details of solid measures.
The chancellor spoke to parliament as financial markets across the world struggled further from the banking crisis after the German government stepped in to rescue troubled bank Hypo Real Estate.
German chancellor Angela Merkel had earlier implied that her government would extend protection for savers, but her comments were misread as an unlimited guarantee for deposits.
Shadow chancellor George Osborne questioned whether the government was told about the German decision, but pledged to work with the chancellor.
He also warned about the threat of inaction.
Mr Darling said the Irish government's decision to guarantee savings, since followed by a number of European Union members, was a surprise to the rest of the bloc.
The chancellor also hit out at member states acting unilaterally and called on nations to work together.
"Our priority, at home and abroad, is to bring stability to the financial system, ensure depositors and savers are protected, and defend the interest of the taxpayer," he said.