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| Quote: He told the BBC that big banks must be broken up in order to prevent another financial crisis. "If we don't do something, next time [a crisis] happens it will break the country - it will go bankrupt," he told the Andrew Marr Show. | |
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Totally agree but it will never happen. The banks have too much influence as it stands. Break them up and give us a dozen smaller banks, plus a multitude of investment banks. Break up the big banks into their original banks going back years.
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| Quote: Improvements to depositor protection are also on the list, including a new class of "safe haven" accounts, which would only be invested in safe assets. In return for guaranteed protection, investors would receive low returns. Under the current Financial Services Compensation Scheme, only the first £50,000 protected. The commission wants this limit to apply to each brand rather than to each licensed institution, which would give savers greater protection. | |
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Why should it be a low return? It should be 100% guaranteed and huge penalties if any of the capital is lost.
I like the idea of brands being protected rather than what happens now. You really need to know who owns what bank to discover if you are protected. For example RBS owns Nat West, Coutts and yet if you had £50000 in each you would only get protection for £50000 in total. It is far too confusing as it stands now.