Friday, 8 August 2014
UK’s bank regulators contradict each other.
A radio station I often listen to, Smooth Radio, repeats ad nausiam an advert placed by the Financial Services Authority to the effect that bank accounts in the UK are backed by government (i.e. taxpayers) to the tune of £85,000 per person.
The advert is repeated so often that after listening to Smooth Radio for more than a few hours you get sick of it: which is not a brilliant way of advertising anything.
Anyway, in contrast to the above, the Vickers commission (like Dodd-Frank in the US) rightly said that bank subsidies were undesirable.
So why do we have TAXPAYER FUNDED deposit insurance in the UK? That’s a subsidy of banking. At least in the US, they have FDIC for small banks which in contrast is SELF-FUNDING.
Can’t the UK authorities get the simplest things right?