Is Your Bank Safe?

From the BBC:

This is what the UK (and US) government and financial authorities have been worried about – that banks exposed to too many defaulting mortgages might collapse.
Unlike in the US, where small banks frequently go bust, there is no mechanism in place yet to effect a swift rescue of a UK bank.
The takeover by Lloyds-TSB of HBOS will also reduce competition among mortgage lenders, tending to make it easier for the remaining lenders to charge that bit more for their loans – or offer less interest on bank accounts.
So mortgages are likely to be set higher above the Bank of England’s base rate than was the case before.
Banks and the money they lend are essential to the normal functioning of the economy.
If they have less money to lend, or do so on much more expensive terms, this will inevitably restrain economic activity, just as if the Bank of England had jacked up its bank rate.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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