How to get the money back from the bankers

When the first signs of the British banks failing arose, I thought that the solution was obvious. The Northern Rock Bank was the first to go, and although at that time I did not realise that they were merely the first in a row of dominoes, I thought the best way to handle the run on the bank was for the Government to guarantee the deposits, put the bank into liquidation and reconstruct it. Liquidation is always a last resort, but it enables, in these circumstances, the liquidator has the legal right to renounce onerous contracts (too bad for the people contracting, but they took their chances when they entered into those contracts) and reconstruct the bank in the interests of the creditors and shareholders. Continue reading