No Banks “too big to fail”

No Banks “too big to fail”

12:01 PM, 14th June 2022, About 2 weeks ago 3

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The Bank of England has published their assessment that out of the 8 major Banks in the UK sector there are none that are “too big to fail” and would need government support if they got into trouble again.

If a major UK bank failed today it could do so safely, remaining open and continuing to provide vital banking services to the economy with shareholders and investors, not taxpayers first in line to bear the costs.

The Banks individually assessed were: Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest, Santander UK, Standard Chartered and Virgin Money UK.

The Bank of England works with independent UK banks to ensure that if they do experience serious problems they can be dealt with safely minimising disruption to the UK economy – this is called resolution. Contingency planning for resolution does not mean these banks are likely to experience problems.

Dave Ramsden, Deputy Governor for Markets and Banking at the Bank of England said:

“The Resolvability Assessment Framework is a core part of the UK’s response to the global financial crisis, and demonstrates how the UK has overcome the problem of ‘too big to fail’. The UK authorities have developed a resolution regime that successfully reduces risks to depositors and the financial system and better protects the UK’s public funds. Safely resolving a large bank will always be a complex challenge so it’s important that both we and the major banks continue to prioritise work on this issue.”



Comments

Tim Rogers

12:44 PM, 14th June 2022, About 2 weeks ago

If memory serves, and I'm sure there are folks here who have a better grasp of things than me, In the aftermath of the 1930 crash and again after the 2008 crash, the recommendation was the same. All retail banking should be permanently separated from the commercial arm. This would remove the endless money stream that causes commercial banking to take risks with no regard to the consequences. It would also allow the crash of a commercial arm without affecting the retail arm. Of course these recommendations have never been implemented due to the cries of 'it's too difficult', "it can't be done", "it will take 7 years". Unfortunately until it is done, we, the customers of the retail section, are all vulnerable.

Allan Thornton

13:29 PM, 14th June 2022, About 2 weeks ago

The reason for that statement is to be found in the IMF Document on "Bail - Ins" of 2010. That authorised the use of customers money being exchanged for "scrip". Essentially the ultimate answer to the ownership of money question - the banks own it. Make no mistake since 2008 and QE since then... They OWN the money supply for the first time in history. The exponential rise in law making and "privacy" laws ensure that they will continue to own the majority which they now declare we will repay in interest because it was somebody else's fault. Cf Billygoat Gates and "We didn't know......." in recent weeks. Won't stop him continuing to make profits from his "fabulous" vaccines. Or the banks charging you twice for owning your own money

Rennie

21:38 PM, 22nd June 2022, About A week ago

Spot on Allan! Bail ins is what it is all about. The depositors will pay.

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