From the FT:
http://www.ft.com/cms/s/0/cc10b29c-655e-11dc-bf89-0000779fd2ac.html
The Financial Times has also learnt that the Treasury, the Bank of
England and the Financial Services Authority have concluded that the
current system for protecting savers, which only guarantees deposits up
to £35,000, is inadequate. They have already begun a review of the
system and are minded to opt for a US-style alternative, ringfencing
depositors’ money in the event of a bank’s failure.
Mr Darling’s
intervention came after it became clear that the run on the Northern
Rock, the first mass public bank run since the 1860s, was not abating
as a third day saw thousands queuing outside branches to withdraw their
cash.