Stop bailing out bank customers

Northern Rock storefront

Here in the land of milky cups of tea if you deposit money in a bank, the government guarantees you won’t lose any of the first £75,000 of that cash. Quite when the government became a believable source of promises I don’t recall.

So this Financial Services Compensation Scheme (FSCS) limit is 100%, which means no one has to give a shit about the way the bank you choose is run. If the bank goes bust, who gives a shit? The government will bail you out. The government won’t let any UK banks collapse, so the banks apparently don’t have to give a shit either, just keep those bonuses flowing! I threw about £20k into that Kaupthing Edge Icelandic bank at a rate of 6.55%. I didn’t give a shit how foolishly that bank was run, I just wanted that money for sitting on my arse. Then the bank went bust, but I still didn’t give a shit, because I checked it was guaranteed beforehand.
In summary: No shits given by anyone.

So how about this, we change the guaranteed amount to 90%, so I actually have a chance of losing some cash? That will make me put a little effort into researching the competency of the bank involved. At the moment, I put significantly more effort into buying teabags.

I suspect this means banks would be less likely to vampirically squeeze every possible drop of bloody cash out and serve it in ornate dividend cups to shareholders, barely leaving a shambling husk behind, which everyone pretends is a healthy person because the alternative is terrifying.

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