Reply to post: Re: That is not what should be regulated

Banks told: Look, your systems WILL fail. What is your backup plan?

Doctor Syntax Silver badge

Re: That is not what should be regulated

"but in the worst case customers will take their government-guaranteed money elsewhere and that will be that."

That's the problem from the government's point of view. The money comes from government (well, from all of us really but that's rarely a consideration for government, especially the Treasury which considers it really owns all the money anyway). It isn't the bank's worst case, or the customers' worst case they're worried about, it's their worst case. If a bank fails its the government that's at risk and it wants to minimise that risk. That's why they want to regulate.

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