The Financial Services Compensation Scheme covers the first £35,000 of savings per person, in each institution.
Anyone with savings of more than £35,000 must be considering withdrawing the excess and spreading it across different banks; which means they are also considering which banks are vulnerable and moving out of them completely - you would wouldn't you? Who wants the hassle of claiming and waiting to retrieve their own money. Move anything and you would move the lot and spread it around safer havens. It only takes a few with higher deposits to start moving their money and those with less will do so too, on the hassle-avoidance argument.
Guaranteeing deposits in their entirety would have been a more sensible move than throwing all those billions at Northern Rock. Another run on a UK bank will be the last straw.
Afterthought:
And while considering the safety of your cash perhaps it's worth looking at your insurances and who they are with.
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Although I've given up on the dead tree press - and so has Mrs S; I picked up the business section of the Daily Telegrout yesterday (as these bits often get left behind), and read it from cover to cover on the train.
Reading your posts today and yesterday lets me recall that most, if not all of the comment was written as if it was over the heads of the government here, and disregarding - even ignoring - it'e presence in UK.
It was a feeling that Brown's uselessness in this crisis is actually now effectively bypassed by money makers, which seeped through, and you seem to have touched on this here.
Good point about the psychology.
You have touched on something quite scary too, Scroblene - the irrelevance of the government. Internationally they have no word to say on anything at all, at a time of great changes in power relations, particularly in our part of the world. The Russian Foreign Minister said it all when he smacked Miliband on the snout. I suspect most other foreign ministers would, and do, too. As for the Commonwealth, can you imagine any member feeling the UK has much to do with them any more: a distant nostalgia at best, like second cousin twice removed.
The economyand financial world has been nothing more than the collapsing of the UK into a money-laundering, tax-avoiding, unregulated casino; with the privatisation of the state sector for private profit matched only by the piratical grab for social wealth in the transition economies.
We feel poorer and ripped-off and plundered by the government elected to heal (and to ameliorate by replacing our tired and rather backwards economy with a knowledge and research economy) the effects of economic shift and transfer of industrial and manufacturing activity to the East.
Elderly people must experience the same disillusion and helplessness when maltreated as our society has been maltreated by powerful plunderers.
And when you have sweet FA, like me, you do HUGELY enjoy all these headless financial chickens running around squawking "Save us, save us".
And is it now the USSA?
I don't like seeing Brown practising tearing up the rule book, any rule book Elby. It will give him ideas above his station.
I don't like seeing Brown practising tearing up the rule book, any rule book Elby. It will give him ideas above his station.
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