Still Worried About Bank Bankruptcies! Who's Safe?

chrisweb

When you save money in a bank it is an investment. Simple as that.

Traditionally a well managed bank would give a good return, a bad one might go bankrupt and lose your money.

Now the government guarantees savings more than ever which encourages the banks to be more risk orientated since a lot of the money is insured. Also people get a false sense of security because they feel their money is secure so will invest in bad banks as they are not worried about losing their investment.

However, most banks are sitting on massive losses that have yet to unfold so many expect more bailouts to follow. The U.K economy is not in great shape and what happens if the government can't afford to bailout banks. Its either a big tax payer burden or lose your savings - neither is good.

Is there a bank which is truly safe.

Even barclays stating a profit I find hard to beleive as all banks were posting record profits while sitting on dodgy loans and credit default swaps which was always going to go bad.

Who can we trust now?