| Protect individual depositors in regulated banks Position1 #7182 Depositors in regulated banks should be protected by the governments that run the regulators. |
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+Citations (1)
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Author: Mark Shuttleworth
Cited by: David Price 11:02 AM 13 October 2008 GMT
Citerank: (4) 7131Global insolvency / bankruptcyThe term “credit crunch” misleadingly suggests that the problem is merely one of confidence, that calm will return if liquidity is introduced to the system—when, in reality, the real issue is one of solvency and systemic bankruptcy.959C6EF, 7133Companies bought on borrowed money fail to service debtThere will be a steady flood of announcements of setbacks, restructurings and bankruptcies as companies that were bought with borrowed money, n the private equity boom 2003-07, turn out to be unable to service their debt.1198CE71, 7179Hold financial institution earnings in escrow for seven yearsFinancial institution earnings should only be recognised over a seven year period, and bonuses based on those earnings should be held in escrow until that seven year period is up.959C6EF, 128954Hold financial institution earnings in escrow for seven yearsFinancial institution earnings should only be recognised over a seven year period, and bonuses based on those earnings should be held in escrow until that seven year period is up.959C6EF
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Excerpt / Summaryhttp://www.markshuttle... "I think the Irish and other countries who have guaranteed the deposits of individual users have done the right thing. Governments setup regulatory authorities, and banks advertise that they are regulated. The people who appoint those regulators need to stand by the approach they take - they should offer a guarantee that they will stand by their product, and when it fails, they will stand by the people who trusted in them. Depositors at banks in the UK really should not have to worry that the bank might fail - such a failure should at most affect the interest rate they receive, not the safety of their capital." |