How the £500 billion bank rescue will affect you

Ministers hope yesterday's astonishing £500billion Government bail-out will shore up Britain's tottering High Street banking giants. They are also keeping their fingers crossed that the bold move, coupled with a worldwide cut in interest rates, will help calm the jittery UK economy. Mirror financial expert John Husband spells out just what it all means for you, your savings and your mortgage. Q WHAT exactly is the Government's plan and what does it hope to achieve? A IT is pumping money into our banks to ensure that they don't go bust. They're short of capital and cash, so it is investing directly by buying shares in them and lending the cash they desperately need to carry on lending. Q WILL the Government bail- out make our savings safe? A YES and no. We're not out of the woods yet. But by refinancing the banks, the... [read full story]