Comments on: Taxpayers are looking increasingly exposed on the back of Co-op downgrade

By: the caber ninja

the caber ninja — Wed, 19 Jun 2013 10:50:00 +0000

Should keep in mind that the ratings handed out by the likes of Moodys and S&P have no relation to the basic health of whatever institution is in the firing line – rather, these ratings are a reflection of the opinion of global investors as to the ease and scale of return which said institution is likely to provide to them. That is all.

By: Cole

Cole — Wed, 19 Jun 2013 06:57:00 +0000

I thought the point was that there is actually a ‘market’ solution to the Coop’s problem. It may not be a satisfactory one, but maybe about the best given how their idiotic management behaved. It seems they were infected with the same mania as the some of others, making acquisitions they had neither the skill nor the resources to execute. Now all of our major banks have been exposed as incompetents or crooks, or both.

LB is correct about the level of government protection. It’s limited, as with all banks.

By: LB

LB — Tue, 18 Jun 2013 13:26:00 +0000

“We’ve got a new law to separate the High Street branch from the dealing floor to protect taxpayers when mistakes are made.”

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The law is going to do the reverse. Protect the dealing floor from the casino operations of the retail branches.

RBS – retail
NR – retail
Halifax BOS – retail
Bradford and Bingley – retail
….

By: LB

LB — Tue, 18 Jun 2013 13:24:00 +0000

In light of the downgrade it’s very important to make one thing clear: deposits are safe. The government (or in reality the taxpayer) is committed to picking up the tab should the situation deteriorate further.

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Not true. Only the first 85K (100,000 EUR) is safe. The rest is exposed to massive losses.

By: LB

LB — Tue, 18 Jun 2013 13:19:00 +0000

In reply to Tom Laz Bisley. Lending money to people who can't repay it. They then default, and screw others. Now, what about those loans the Labour party took out. Perhaps they should repay their loans to help the coop.

By: LB

LB — Tue, 18 Jun 2013 13:18:00 +0000

Bankrupt them.

It’s what should have happened with the other banks.

A bit of capitalism is needed, not socialising the losses and screwing the tax payers.

By: Tom Laz Bisley

Tom Laz Bisley — Tue, 18 Jun 2013 13:05:00 +0000

What has Co-op done to get into such a situation? I bank with them because they seemed the least c*ntish of all the high street banks but now I wonder if there is any point into continuing to use the High Street seeing as no-one know what the hell they are doing!