How the Banking Crisis Should have Been Dealt with

Well here we are, a couple of months on and what has changed? Very little as far as the bankers are concerned. After the Government has spent billions to bail them out the bankers are showing all the signs of getting up to their old tricks again. See Times Banking Article, how many bets they will be awarding themselves mega bonuses over christmas?

What we have done is sent the Fat Cat Bankers (oh how I long to swap a B for a W) entirely the wrong message. We have said that they are so important to us, that regardless of what they do, or what level of greed they espouse we will support them.

What complete tosh.

What we should have done is ALLOW the two major British banks concerned to become bankrupt. Move the accounts of all their investors to a new bank, with no member of it the same, and used the billions spent to prop up those banks to repay the investors capped at say a max of 500K or 80% of the account value whichever is the least. We must not forget the INVESTORS do need to learn a lesson as well as the bankers. It is these Investors and the bank shareholders who need to LEARN to be careful about investing their money and insist on proper controls.

Its not just the complacent bankers, it is also the investors and shareholders who turned a blind eye to the banks activities.

As it is nobody has learned a thing and I am saying that its odds on that we are in for a repeat performance in 5-10 years.