Germany gives 100% deposit protection

[AtW]

Would be interesting to watch from the sidelines if this did happen. Can't see it occurring though

Why do you think there are no major lawsuits in this area so far despite huge losses etc? In US people sue for too hot coffee in McDonalds, plenty of baseless suits yet so far no major company did that in relation to kredit krunch, why is that you think?

The reason is simply - people who can sue are sitting on more toxic stuff than they lost so far, they don't want to show how much they have so they try to stay put as lawsuit will only expose them and they'd go bankrupt before court case starts.

In the UK those criminals are likely to get away with it yet again, but in the USA plenty will be jailed soon.

[AtW]

You don't understand - banks compete between each other. If bank B offers a higher interest rate than bank A, then people would put their deposits into bank B rather than bank A. If people know their money is 100% safe, they will no longer care about how dodgy the bank is.

It's the job of a regulator to ensure dodgy banks don't have bank licenses! Anyone who takes deposits should satisfy very tight lending criteria so that they don't put deposits at risk. If it's a hedge fund then it is another matter - people who take money in get no guarantees at all, that's why banks should have never been allowed to act like hedge funds.

[AtW]

honest banks will be unable to compete.

[BrilloPad]

http://news.bbc.co.uk/1/hi/business/7653317.stm

Helmut follows Paddy in which the State effectively underwrites the whole banking system.

If the banking system is 'so important' then why wasn't it nationalised to start with?

WHS

[sappatz]

this is de facto nationalisation
this is really scary. there is a bank run going on and they are very afraid of the system collapsing

[AtW]

they are very afraid of the system collapsing

Only Brown apparently isn't afraid of that as the UK's economy was based on strong fundamentals.

[Ruprect]

Only Brown apparently isn't afraid of that as the UK's economy was based on strong fundamentals.

Don't forget that there is no longer a boom and bust economy either

[oracleslave]

Don't forget that there is no longer a boom and bust economy either

I am sure he is monitoring the situation closely

[Ruprect]

I am sure he is monitoring the situation closely

And taking all steps needed...such as re-employing Mandelson

[oracleslave]

And taking all steps needed...such as re-employing Mandelson

We're on the path/passport to oblivion