Saturday, Feb 14, 2009
More ridiculous punishments for savers
Guardian: Building Societies face £1.1bn bill for bank failures
Britain's banks and building societies will have to pay more than £1.1bn to cover compensation to customers of the institutions that failed due to the credit crisis, it emerged today. The bill – paid, in effect, by anyone who has a savings or mortgage account in Britain — was revealed as the Financial Services Compensation Scheme (FSCS) published its budget for the next financial year.
Posted by quiet guy @ 03:18 PM (741 views) Add Comment
7 Comments
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1. hpwatcher said...
Punishing the good bankers to support the bad ones......more absolute lunacy from nu Labour
2. mdmick said...
There's never been a better time to have nothing.
A friend of mine has nothing and, in relative terms, I think that maybe he is rich.
Nothing in GBP is equivalent to nothing in gold or platinum or dollars.
If you invested in nothing 2 years ago, you would now be tens of thousand pounds richer than many who bought property at the time.
3. jack c said...
@mdmick - under this labour administration pretty soon everyone will have nothing !
4. Browneconomy said...
As if we didn't know this already - the prudent are the loosers
We are paying to recapitalise the banks through:
1) artificially low interest rates - the banks are rebuilding their reserves having cut rates to depositors by 80% & so increasing their margins.
2) future rises in tax
3) and now prudent building societies will be cutting saving rates further to 'pay' their contribution to the FCS
Its be said many times before: can someone organise a strike, a collective mass withdrawal?
If just 5% of deposits were withdrawn there would be a national bank run.
5. Crunchy said...
Seasick Steve has a song about that and it goes something like this..........
http://www.youtube.com/watch?gl=GB&hl=en-GB&v=Px8R2a7ZLpA&NR=1
No wonder Brits have identified with this X Hobo Bluesman.
6. shining wit said...
mdmick.....
Agreed. That's the lunacy of this time. Still the housing market should bounce back in the V shaped format as predicted by the Band of England last week. look:
Absolutely nothing to worry about, perfectly reasonable, think I'll buy some 'off-plan' apartments next week.
7. techieman said...
A non story. I have said this before using the insurance companies generally and independant specifically as an example. The non reckless lenders pay twice. Once in lost business to the reckless and once in being levied a charge. How much of this and how it gets passsed on is another issue. BUT if it is such a large issue then the only way will be for the remaining lenders to increase the costs to their custiomers - i.e. higher loan rates or i suppose lower margins.......