The British government, after acting like stupid chickens with their heads cut off during the collapse of the Northern Rock bank, has now put into place new policies in order to deal with the wave of bank failures about to hit in 2008 and beyond.
Not a moment too soon I'd say.
Also, the US Fed today stepped up their secret cash auctions to failing banks by 50%. Hmmm...
Waves of banks will be failing in Europe and the US. Waves of 'em. No surprises for HP'ers.
IF YOU HAVE MORE THAN THE FDIC LIMIT IN ANY US BANK - GET IT OUT TODAY AND GET IT OUT NOW - YOU HAVE BEEN WARNED. IF YOU HAVE DEPOSITS ANYWHERE ELSE, OPERATE UNDER THE ASSUMPTION THAT YOUR BANK WILL FAIL. GET YOUR MONEY INTO SAFE ASSETS NOW - AND NO, MONEY MARKET FUNDS ARE NOT SAFE.
UK regulator to get tough powers over failing banks
Britain's financial regulator is to be given sweeping powers to intervene in failing banks, as part of a banking code shake-up aimed at avoiding a repeat of the crisis that engulfed Northern Rock, the mortgage lender.
Alistair Darling, the chancellor, said the new powers - which echo those in place in the US - would allow the Financial Services Authority to seize and protect depositors' cash when a bank got into serious difficulty, heading off the risk of a run on the bank.
He also proposed changes to Britain's regulatory system - the so-called tripartite system - where the Treasury, Bank of England and FSA work together in handling banking crises.
"I want to make sure our own legislation is up to the mark in dealing with problems when they arise in future," Mr Darling told the Financial Times.