EU proposes a levy on banks to create a crisis fund

[jake-the-peg]

A good idea?

[jake-the-peg]

Sorry http://news.bbc.co.uk...business/10159631.stm

[rojash]

Yes, better that they should provide their own insurance than rely on being bailed out by the poor - which is essentially what is happening now.

[rov1200]

A tax on banks I agree with. But put the clock back a few months and our (EU money) would have been put to rescuing the Greek economy. Their profligerate government spent well beyond their means so interest rates had to rise well above those of the rest of Europe. Knowing their is a cushion it could happen again elsewhere.

I believe our government thinks the bank tax should be held by the country that pays it as you can imagine just like the German handouts there would be uproar propping up someone else.

Also with this suggested scheme the British taxpayer doesn't gain a cent from past misdeeds. At least we got a return from the bonus tax.

What do they mean when they said it was to help with the winding down of the bank? To help depositors maybe? But we are already insured for up to £50,000 of deposits if they default.

[jake-the-peg]

"But we are already insured for up to £50,000 of deposits if they default."

Yod'd be surprised by how many people had more than that - if only temporarilly in their accounts

But that's not the only issue about a bank going bust Rov

Do you have a mortgage? - how'd you feel if the bank went bust and the administrators foreclosed on it

How about the company you work for - What if they went out of business after the bank foreclosed on a loan to them?

And do you think these Banks are all just British?

And even they, like all the Banks have huge dealings with all the others.

We saw that a couple of years back - US sub prime bringing banks down here - If Gordon Brown hadn't moved quickly with lots of money the lot'd have gone down like ninepins.

Thats why it's so important to do something now that Ozzy is at number 11 - heaven only knows what would have happened if he'd been in charge then!

[modeller]

Good idea but is there a risk that banks could become even more reckless if they know they are insured against losses. ?

[rojash]

"Good idea but is there a risk that banks could become even more reckless if they know they are insured against losses."
The idea of the scheme is not to insure the bank, but to indemnify victims of the bank. So a reckless bank could still go bust, but the potential victims (in the broadest sense of the word) would be insured by payments previously made by that bank and all the others.

[sandyRoe]

The banks were recently operating with the thought that if they made a lot of money they'd keep it, if they lost a fortune we, the public, would bail them out.
If there was a fund in place to protect ordinary customers the fat cats could take their chances.

[youngmafbog]

A levy only works if it is worldwide, otherwise the banks will (and quite easily can) trade elsewhere.

Saying Brown throwing buckets of cash in to 'rescue' the Banks worked is a bit subjective since you really dont know what would have happened if the market was left to find its feet. It may not have been as disastrous as made out. On the other hand it may of course?

The EU should NOT have any money from us. They cannot be trusted.