Myners Signals Fears Remain over More Bank Failures

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CITY minister Lord Myners refused to rule out any further bank or building society collapses, but said the financial sector is in a 'dramatically better' state than it was 12 months ago, writes Lucy Farndon.

One year on from the collapse of Lehman Brothers, Myners told the Daily Mail that consumers can rest assured that the government will ensure that all savings deposits will be protected.

However, when repeatedly questioned as to whether any institutions were at risk of collapse, following the turmoil at Northern Rock, Lloyds Banking Group and Royal Bank of Scotland, he would only point to the safety net that is in place for consumers.

'We have in place resolution arrangements to deal with institutions that experience difficulties,' he said.

When asked if there may be further failures, he said: 'The system is robust.' When pressed further on whether the Treasury was currently assessing the fate of any troubled financial services firm, Myners said only: 'The FSA has primary responsibility for regulation so you should speak with them. …