KAUPTHING-EDGE new top savings a/c ?

bristolleedsfan

[quote=Steve_xx;8514025If_another_UK_bank_faced_difficulty_right_now_then_I_have_to_say_that_I_don't_think_that_the_UK_government_will_stomach_another_propping_up_at_this_point.[/quote]


Government wouldnt need to prop any bank up again, they have already said that if another Bank was to have liquidity problems, everyone would remain :lipsrseal :shhh: about it , any BOE help would be secret and if neccessary another bank would be found to takeover any stricken Bank in the same way as any Building Societies that have got into trouble in the past, The BSA have lined up a Building Society to take over the stricken Building Society.

tradetime

I'm working on the basis of the moneyweek article. If other banks and financial institutions are nervous about the credit worthiness of these organisations why shouldn't I be?

I haven't read the moneyweek article, least I don't recall it particularly, but have read a few articles on financial and economic situation in Iceland, and I wouldn't dispute your view of caution. Iceland has many issues to deal with, and it's banks on the whole may well be at more risk than UK banks as a whole. But as has been pointed out the financial compensation scheme covers the first £35,000 of deposits, the fact that the bank is an Icelandic bank will be of no consequence, sufficiant members of the British public have money in these banks and a failure to pay out by the scheme would be judged by the public as a failure of the scheme, this would do irreperable damage to confidence in the scheme and make it meaningless if another UK institution got into trouble in the future.