It’s good to see the European Union trying to force member states to stop subsidising banks. That’s according to this Reuters article. Given half a chance, bankster / criminals will always try to offer local politicians large wads of cash in brown envelopes in exchange for bank friendly legislation, including the bail out of banks with taxpayers’ money.
This must stop.
Those depositing money in banks should have to face reality. If they want to have their money loaned on to mortgagors, businesses, Greece etc then those depositors should carry the risk, not taxpayers. I.e. if the relevant bank goes belly up, then depositors, bondholders etc can get stuffed, far as I’m concerned. And it’s good to see the EU agrees with that.
Alternatively, if depositors want a chunk of their money to be totally safe, then they’re entitled to that safety. In the UK depositors can already obtain total safety by depositing money with National Savings and Investments. However, there’d be nothing to stop every high street bank I the UK offering totally safe accounts where relevant monies are simply lodged with the Bank of England.