Let the banks fail...

ILW

Savers tend to be dismissed by many on here. But most would be very peaved if their employers payroll disappeared with the failing bank and they failed to get any wages, accrued holiday pay etc etc.

2010

Generali wrote: »

Can you clarify what you mean by this?

Pretty obvious, but just for you, ring fence the retail arm and let the "investment arm" gamble to their hearts content and if they go under, so be it.

CLAPTON

2010 wrote: »

Pretty obvious, but just for you, ring fence the retail arm and let the "investment arm" gamble to their hearts content and if they go under, so be it.

So you want to creat banks like Northern Rock, Dunfermline BS, Bradford and Bingley plus the other small BS (that were quietly rescued)?

Would you rescue them or let them fail?

Graham_Devon

Paul Tucker, candidate for taking over from Mervyn, also now says banks should be allowed to fail....(in an orderly way).

http://www.bbc.co.uk/news/business-19978900

Loughton_Monkey

Graham_Devon wrote: »

Paul Tucker, candidate for taking over from Mervyn, also now says banks should be allowed to fail....(in an orderly way).

By 'orderly', he probably means alphabetically. Barclays, HSBC, Lloyds, RBOS, etc.

Or possibly in order of preference as to who takes the hit. Depositors first, then employees, then taxpayer, and lastly the shareholders.

2010

Paul Tucker or anyone else can say that now (let banks fail) but the fact remains that if the BoE and the so-called regulators don`t get a tight grip on the banks, they`ll be soon running to the government saying the opposite if the worse happens again.

No UK government dare let any UK bank fail

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STILL.

A bit in today`s papers said that the bankers are expecting bigger bonuses this Christmas than last year.
I thought this bonus culture was being reigned in.
Some chance.

wotsthat

What would've happened if the government had protected the Northern Rock depositors (to prevent the embarrassing queues) and then let them go bust?

They were hardly RBS.

Thrugelmir

2010 wrote: »

Paul Tucker or anyone else can say that now (let banks fail)

This has to be put into the context that we need more banks in the marketplace. Not the fact that banking is currently dominated by the big 6.

Loughton_Monkey

Thrugelmir wrote: »

This has to be put into the context that we need more banks in the marketplace. Not the fact that banking is currently dominated by the big 6.

Or indeed bring back the Building Society.

sabretoothtigger

wotsthat wrote: »

What would've happened if the government had protected the Northern Rock depositors (to prevent the embarrassing queues) and then let them go bust?

They were hardly RBS.

That is an ironic point, that RBS would likely be saved? That allowing NR to go bankrupt and obeying natural bankruptcy laws we've followed for hundreds of years would have bought pressure on the other banks and stopped that takeover RBS did in the autumn of 2007

Maybe they might have been fine. Barclays was outbid and was ok