Northern Rock Small Shareholders' Group: October 2010

Friday 1 October 2010

Increase in depositor protection levels

To ask Her Majesty's Government when they plan to direct the Financial Services Authority to implement the European Union-wide deposit protection limit of €100,000 under the Deposit Guarantee Schemes Directive (94/19/EC, as amended by Directive 2009/14/EC).

Lord Sassoon (Commercial Secretary, HM Treasury; Conservative)

The amended Deposit Guarantee Schemes Directive (Directive 2009/14/EC, amending Directive 94/19/EC) increases the coverage limit for deposit guarantee schemes to €100,000 from 31 December 2010. The coverage limit for deposits under the Financial Services Compensation Scheme will therefore be increased from this date. The Financial Services Authority plans to issue a consultation in October 2010 on increasing the coverage limit to the equivalent of €100,000.

Increase in depositor protection levels

Lord Moonie (Labour)

Lord Sassoon (Commercial Secretary, HM Treasury; Conservative)

About NRSSG

The NRSSG was establishes at the time the business's troubles started in August 2007. Prior to nationalisation we would have prefered Northern Rock plc to remain an independent, publicly-quoted company providing good-quality jobs in the North East and supporting the charitable Northern Rock Foundation. Many of our members would prefer it to revert to its original staus as a Mutual Society. We were and are opposed to a 'fire sale' of the company's assets at below true value, or the further dismemberment of the business. We will continue to resist pressure by authorities to compel Northern Rock to actions which are not in the best interest of the business and the region.

We campaign for fair compensation for all those whose shares were expropriated by the Government, including demanding participation (such as the return of our shares, which now comprise a small proportion of the share capital following the Government's "rights issue" to itself) when the business is eventually returned to the private sector, and for an enquiry into all the circumstances leading up to nationalisation. The enquiries by the Financial Services Authority are welcome but insufficient. While we support legal actions being taken by others, we are not a party to them.

The Honorary President is Lord Stevens of Kirkwhelpington, Chancellor of the University of Northumbria, who is a saver and shareholder.

Membership of the NRSSG is free and open to all of the many thousands of individuals whose shares in the Rock were cancelled by the Government.

Northern Rock Small Shareholders' Group

Friday 1 October 2010

Increase in depositor protection levels

Increase in depositor protection levels

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