The taxpayer will have to bail out savers if any of Britain's top 25 lenders runs into a Northern Rock-style crisis, the Treasury has admitted.
New details have emerged that show the Financial Services Compensation Scheme (FSCS) can call on a maximum of just £4bn from banks and insurers in the event of a collapse. However, each of the top 25 banks and building societies has customer deposits far in excess of £4bn.
HBOS, Britain's largest deposit taker, had £111bn last year, reveal papers from the Financial Services Authority.
Emphasis added by me.
Yes, that's England, but it's bad over there too. They had their own real estate bubble (also with soaring rents). They're also affected by skyrocketing food and energy prices. And some screwball loans have been made (how many? who knows? and will we ever know?).
More bank collapses are expected here in America, so why not there too?
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