The Journal is reporting today that the Rock has repaid more than half of the £27bn loan from the taxpayers. Revealed by the Chancellor yesterday, Alistair Darling also defended the decision to take the lender into public ownership earlier this year.
This news comes shortly after it was reported that customers had already deposited £4bn in the bank as of last month as confidence grew.
The repayments have been as a result of redemption of mortgages and are happily ahead of schedule.
The statement comes after Gordon Brown’s so called economic ‘War Cabinet’ named the National Economic Council which brings together senior ministers to co-ordinate the response to the current crisis.
Furthermore, Mr Darling confirmed that the Financial Services Authority is increasing from £35,000 to £50,000 the size of bank deposit the Government will guarantee. This will cover 98% of accounts.
The measure does not compare with blanket guarantees the German, Irish and other EU governments have given to depositors. The measure also did not impress the markets, as the plummeting FTSE showed.
Mr Darling also refused to be drawn on opposition calls for a government-backed recapitalisation of the banks, primly declining to provide a "running commentary" on his deliberations.
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