The Governments £500bn rescue package for UK banks has failed to lift fears of economic meltdown among the general public.

The part-nationalisation deal comes as a final attempt to prevent the banks from a catastrophic collapse, after days of plummeting shares but worried savers are not convinced.

Customers are still taking their cash out of banks and investing in home safes in an attempt to beat the current banking crisis.

Stephen Timms, Christian Labour MP for East Ham and Financial Secretary to the Treasury, said:

“It’s certainly a very important step and a very bold one that the Government has taken. I think that it is going to be powerful in helping to build the confidence that’s really needed given the problems that we’ve seen spreading around the world.”

Mr Timms, responding to concerns about the taxpayer footing the bill for bankers mistakes, said he sympathised with the situation but a solution was needed fast. He added:

“Everybody recognises just how damaging it would be if we were to see a serious collapse in the banking sector. Nobody wants to see that happening, the cost of the happening would be immense.”

In an attempt reassure taxpayers Gordon Brown has also announced the days of big bonuses for bank chiefs are over.

Speaking as he began to finalise details of what taxpayers will get in return for their investment, the Prime Minister said he was "angry at irresponsible behaviour" by bankers.

And it seems money markets are finally pulling back from the brink.

This morning the UK banks felt a positive reaction to the rescue package with shares boosted in HBOS by 32%, and the Royal Bank of Scotland added 18%.

Shares in London, Frankfurt and Paris are all reacting positively to the global financial rescue.

Date : 2008-10-09 05:30:10
Source : Christian perspective