Tuesday, Sep 25, 2007
Not Enough Money to Go Around - Bank deposits fund seen worth 4.4 mln pounds
Reuters: Bank deposits fund seen worth 4.4 mln pounds
The fund that Britain taps into in order to protect bank deposits is worth only 4.4 million pounds, a newspaper reported on Tuesday. The report by the Independent comes as the government has signalled it may provide consumers with full protection on deposits of up to 100,000 pounds as the nation's lenders face a credit crisis that triggered the worst run on a British bank in recent memory.
Posted by jj @ 08:55 AM (656 views) Add Comment
6 Comments
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1. bingo said...
It's actually a valid point. Imagine if the government did have to back up its promise to savers...? If push came to shove and any of the major banks did tank, the affect on the economy would be such that the government would lose all kinds of revenue from taxes etc. and would effectively be bankrupt. Similar to if everyone in the UK decided not to buy petrol/diesel for a week. They are one meal away from starving. So it was a brave gesture, but exactly that; bravado....
2. alan said...
As I said a few days back, the NR crisis will get the regulators looking more closely at bank legislation.
Hopefully we can sort out the obvious problems before the next crisis. Yes, I think there will be one coming soon as lots more sub-prime debt defaults.
3. dohousescrashinthewoods said...
You mean they just blustered a pile of spin to try and stop those non-tax-paying foreign investors who are bankrolling our bankrupt nation from moving their savings elsewhere? Who'd have thought it.
4. James said...
Oh, read the article, someone please!
"we operate on a 'pay as you go' basis. So we would levy for whatever funds we needed in order to meet compensation costs...If a bank were to fail, we would look at what we have, that would help us to determine what we have to levy, and then we would go out and levy the industry accordingly."
The 4.4 million pounds' of funds do not signal its capacity or its limit
5. tyrellcorporation said...
The NHS Black-Hole of Waste swallows about £90,000,000,000 a year. How's about this gets trimmed to create a meaningful contingency fund? 4.4 Million is laughable, the dividend payout for NR shareholders is £59 miliion!
Talking of which, is it only me who thinks dividend payments should come out of actual company profit rather than borrowed cash from the government?!?
6. planning4acrash said...
Tyrell, I don't fancy a reduced NHS to bail out the banks! Tho that could happen if the gov't guarantees the banking system!