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Compensation From FSCS – not as safe as it seems

Reading the FSA website, it seems that the remaining banks have to pay out of a fellow bank collapses. There is almost no money held in reserve, and last year they paid out £149m, and their reserves were £139m.

This is absolutely peanuts compared to the sums of money we are looking at with Northern Rock.

Read section 2.4 in particular here


http://www.fsa.gov.uk/pubs/cp/cp07_05.pdf
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