Another problem solved...

[Ruprect]

I'm about to open Ruprect Banking Corp - give me all your money and I'll look after it for you. Its safe, honest.

[rootsnall]

We are not arguiing the benefit of upping the protection of savers , just that the banks should be putting up a large bond to secure the money and not having the tax payer foot the bill if a bank trades without enough liquidity to cover it's debt obligations.

It does go against the grain but it's small change compared to the begging efforts underway from the banks (on other fronts), the house builders, estate agents etc etc

A big push to get the government ( via housing assocs ) to buy the rubbish the builders have on their hands at what will be inflated prices ( dressed up as a great deal ). Now that wil get me

[shaunbhoy]

A green light/safety net for irresponsible lending if ever there was one.
Only in this coiuntry!

[DimPrawn]

I'll have to disagree. For once it is something benefiting the savers and not those living on tick. Anybody with debts or even a mortgage won't benefit from this as they'll not have 50K to tuck away.

We are not arguiing the benefit of upping the protection of savers, just that the banks should be putting up a large bond to secure the money and not having the tax payer foot the bill if a bank trades without enough liquidity to cover it's debt obligations.

[rootsnall]

I'll have to disagree. For once it is something benefiting the savers and not those living on tick. Anybody with debts or even a mortgage won't benefit from this as they'll not have 50K to tuck away.

[milanbenes]

agree with Thomas,

it has to be the funniest thing I have read all day.

Bank's businesses are now fully comprehensively insured

I wonder who genius's are who come up with these amazing solutions to everyday problems

genius


Milan.

[ThomasSoerensen]

This is called self insuring, no. Seen from the small time saver/tax payer that is.

I would call it a free lunch seen from the banks perspective.

[DimPrawn]

That's crazy.

If a bank goes tits up, and the tax payer foots the bill (would be billions £££), how can the bank pay the treasury back with interest? Ridiculous.

So now a bank can trade wihthout fear of failure. You and I have just underwritten them.

Doomed!

[milanbenes]

'Taxpayers are to foot the bill for any future banking failure after the Treasury shied away from forcing lenders to pre-fund the industry compensation scheme for savers.'

http://www.telegraph.co.uk/money/mai...2/cndep102.xml




Milan.