Banking crisis deepens

BBC Radio 4's Money Box Saturday, 17 January at 1204 BST On Radio 4 and Online Programme transcript (16 pages) 17 January 2009

Banks are back in the spotlight with rumours that several will need to raise more capital to help them through the credit crisis.

As the giant Bank of America receives $20bn in new US government aid, Citigroup announces plans to split the firm in two and the Irish government nationalises Anglo Irish Bank.

The programme explores how much further the banking crisis can go.

And this week the UK government announced a financial package to get banks lending to small business.

But is this enough help to keep the banks in business?

We ask Gavin Oldham of the Share Centre and Angela Knight of the the British Bankers' Association (BBA) for their views.

Banking crisis deepens

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Yvette Cooper said payments must take "public finances" into account

The government has announced that some policyholders who lost money in the Equitable Life will receive a payment.

But it is not yet clear who will be offered any money, or how much.

More than a million people who had Equitable policies in 2001 were left with reduced retirement savings.

The Treasury minister Yvette Cooper apologised to those who had lost money and admitted that there had been a failure by the regulators.

Money Box speaks to Paul Braithwaite of the Equitable Members Action Group (EMAG) and Simon Morris from City law firm, CMS Cameron McKenna.

Equitable Life compensation

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Nine out of ten families with children get tax credits, say Directgov

Parents or guardians who failed to claim Children's Tax Credit relief in 2002-03 have just two weeks to claim the relief or lose it.

The now defunct Children's Tax Credit was an income tax relief introduced on 6 April 2001 to help people who had at least one child under 16 living with them.

Eligible claimants could be entitled to more than �500.

Parents or guardians who feel they may be entitled to the relief can apply directly to HMRC but must do so before the 31 January deadline.

HMRC's Clare Merrills joins Money Box to explain who can apply and how.

Children's Tax Credit deadline

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The fund was marketed as relatively 'safe' - away from stock market risk

Thousands of Standard Life customers have been told that their value of their pension fund has fallen by 5%.

Investors in the Pension Sterling Fund believed their money was invested in low risk cash based assets.

But in letters sent out this week the company has blamed poor performance of asset backed securities.

We talk to Tom McPhail of Hargreaves Landsdown about how risky cash funds can actually be and explore the options for Standard Life Pension Sterling Fund investors with John Gill, managing director, customer services at Standard Life.

Standard Life

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BBC Radio 4's Money Box was broadcast on Saturday, 17 January 2009 at 1204 GMT.

The programme was repeated on Sunday 18 January 2009 at 2102 GMT.

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