Banks should Guarantee

Story link: Banks should Guarantee

Banks should offer their depositors a guarantee whether they operate in other countries or not.

When you invest in a company, you don’t have a secure deposit, but at least if they do well your likely to get a healthy return on your money; banks look like a lose, lose situation to me.

Banks should Guarantee

Banks that operate in more than one country should guarantee compensation for depositors, no matter where they live, while the deepening U.K. recession threatens more financial institutions, Britain’s market regulator said.

The system of banks outside the U.K. accepting funds from the country’s citizens without setting aside deposit insurance is “untenable,” the Financial Services Authority said today, referring to the collapse of Icelandic banks. The call for a review comes amid the FSA forecast for a U.K. recession that will be deeper than in other countries, including the U.S.