Author Topic: Terry Le Suer, Banks not liable islanders are... to tune of £100 million  (Read 4020 times)

Offline boatyboy

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Jersey has seen money moved away, to countries that provide a deposit protection scheme. How much has it cost Jersey, being so slow on the uptake, you will have to ask the council of secrets for that information and of course good luck to you. Have you noticed the new argument for giving out information, its commercially sensitive, so I am sorry no information. This started with the Quango web which took important decisions away from our elected politicians ( except for the CM and treasury minister) its getting worse but that is not the story here its only part of it.

When standing as a candidate for election Mike Higgins was asked by the JEP.

Yes. Such schemes are an essential element in protecting the deposits of ordinary people. The draft Law I produced in 2003 while at the JFSC would have protected all deposits up to £33,000 and would have been financed by the banks. Why have ministers not brought it into existence?

http://www.thisisjersey.com/election/senators/issues/depostor-protection/

What members of the States were not aware of and this is critical information, the near collapse of the financial worlds literally has been caused by the greed and gambling habits of the Masters of the Universe (Bankers) . The English Government and other Countries have put in place an insurance scheme that the Banks have to pay for should toxic debts they hold, do more damage than the bank can afford. Call it an insurance policy. An expensive policy at that paid for by the banks.

Let's be clear. Our wonderful CM Terry Le Suer wants the liability for all banks problems to be carried by the Jersey people to the tune of £100 million pounds out of our reserve fund.

Mike Higgins disagreed, in a bad tempered debate he convinced the house the  plan put forward by the CM Terry Le Suer and of course loved with passion by Phillip Ozouf (probably the father of this stupid idea). Mike Higgins said this scheme should  NOT be quickly passed, but should go through scrutiny. It is for this reason………. not made clear on the JEP web site that a delay is to happen.


JEP says

PLANS for a deposit protection scheme have been shelved until after the summer recess for a Scrutiny review.

Despite heavy opposition from around the States Chamber, Economic Scrutiny chairman Mike Higgins used his statutory power to ‘call in’ the legislation and suspend the debate.

But the decision to do so might cost him his job – within two hours of his manoeuvre, Deputy Angela Jeune prepared a ‘no confidence’ motion in the panel.

That proposition was distributed to the media, but because it omitted references to financial implications, it was not technically lodged.

Members spent nearly four hours debating the principles of the scheme, starting on Tuesday afternoon and continuing until around 2.30 pm yesterday.

The proposition by Economic Development Minister Alan Maclean would guarantee compensation for the first £50,000 of bank deposits held in the Island in the event of a bank failure.

http://www.thisisjersey.com/2009/07/16/scrutiny-chairman-faces-confidence-vote/

Shona Pitman then called for a no confidence vote in  CM Terry Le Suer.

Interestingly the documents pertaining to the Depositor Protection Scheme have all been labelled top secret or to put it another way, commercially sensitive. So the council of secrets are at it again.

What are they trying to hide and why? Well done Deputy Higgins and scrutiny for trying to get to the truth. Now for goodness sake vote out  Terry Le Suer before he does more damage to the financial wellbeing of Jersey residents low and middle classes, not muti millionaires and property developers of his own club.

Boatyboy

Offline stoneface

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There's no way taxpayers should guarantee bank deposits. It creates moral hazard - banks can gamble knowing someone else will pick up that particular tab. It's also dangerous for consumers to have such deposit protection. As consumers we should be more careful about who we give our money to, it should be up to us to make sure we're satisfied that the rate of return we're getting is worth the risk of losing our money. To "protect" consumers from this basic act of taking care with their money by providing a government scheme is well intentioned but flawed.

I would prefer to see something along these lines: anyone holding a banking registration should be required to hold commercially-provided insurance on retail deposits, in much the same way that you are required to carry third-party motor insurance. This would mean that the insurance companies would take a great deal of interest in the affairs of the bank, and make sure they're not doing anything too risky. The banks could then compete for your custom based on their credit ratings and the level of deposit protection insurance they carry.
"The only freedom which deserves the name is that of pursuing our own good, in our own way, so long as we do not attempt to deprive others of theirs, or impede their efforts to obtain it." - John Stuart Mill

Offline boatyboy

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It seems I may have jumped the gun just a tad.  The deal ( rather like the Woolworth staff pay out ) allows small investors up to £50 thousand to be paid out of the States ( taxpayer) reserve and then the States ask  the banks to pay it back.

However Banks are well known for trampling all over customers and breaking thin promises. The two that are constantly in the news are making it very hard for business to borrow money and help for homeowners who are struggling with mortgage payments after loosing their jobs. Remember banks, being helped out to the tune of billions were obligated to stop the money drying up,which is exactly what they have done. Buy a house 25% deposit.  What a shower ?

So if legislation is in place for them to be covered for their possible toxic dept by the English Government and the banks'  pay in scheme provided by the Bank of England. Why on earth cannot this fund look after all customers, including those in Jersey. We have our own JFC, and govern ourselves.

The reason is also time, I have been informed. Should you default on your financial obligations with your bank, see how lenient their actions will be.

If they let down customers yet again, I hope the Government will use a very big stick to get added payment by way of compensation.

What a mess, and what basically a load of gamblers and crooks.

This does not apply to hardworking banking staff, but to the ( so called ) Masters of the Universe with their multi-million pay-packet's who make all the bad and rip off decisions. To be fair we must include the Governments watchdogs who have been paid to let them.

Boatyboy.
« Last Edit: July 20, 2009, 01:42:53 AM by boatyboy »

Offline Chevalier Blanc

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Bang on Boatyboy!  Higgins was right and yes let us hope and pray that TLS gets voted out and no to Ozouf. What the f**k do they think they are doing and why for god's sake they are there to protect the people of this island, to look after everybody! Secrets what bloody secrets, this is not a game this is our lives so surely the majority of states members must see that information like this is not to be kept secret, why hide things, what is going on with the C of M? Every decent states members must vote to get not just TLS out but a few others as well!!

Offline moot

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Well done BB
Just when I thought things could only get better they got worse
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debumblebee

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The timing of any deposit protection scheme is unique. If a bank was to go bust then it would of done by now. We are actually slowly creeping out of recession. 

Offline Calimachon

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The timing of any deposit protection scheme is unique. If a bank was to go bust then it would of done by now. We are actually slowly creeping out of recession. 

Got a crystal ball have you?  What about the current thoughts about the double dip?

Cali >:(
TOMORROW (Noun) = A mystical land where 99% of all human productivity, motivation an achievement is stored

debumblebee

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If people want to dwell on the negative thats their call. Personally from looking at the world news I think the worst is over. If a bank were to go under then it would of happened by now. As monies leaving Jersey, apart from re financing decisions you cannot say its massive. In fact Jersey has done pretty well up to now.

Offline Dylan

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The timing of any deposit protection scheme is unique. If a bank was to go bust then it would of done by now. We are actually slowly creeping out of recession. 

You seem to know a lot about creeping!
!dereggub si draobyek ym kniht I

Offline Durendal

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Got a crystal ball have you?  What about the current thoughts about the double dip?

Cali >:(

Cali

I must agree with you as we are not out of the woods yet in my opinion the continuing volatility over energy prices and in particular oil may cause a double dip recession.

Offline boatyboy

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Cali & Durendal you said,

I must agree with you as we are not out of the woods yet in my opinion the continuing volatility over energy prices and in particular oil may cause a double dip recession.



Read this morning that one million people in England who still have jobs have been made part time rather than loosing their jobs. BA annouce 3,700  jobs to go.

Jersey has a very up beat message from Economic Minister Phillip Ozouf we have loads of money he says. Yes Phillip you have taken a whole lot more off the working people GST and personal tax reforms.

http://www.gov.je/TreasuryResources/News/SOJAcs.htm

I suggest 2008 was when the financial troubles really  hit the street. The knock on effect will be felt this year and next, hence the 44 million bailout. So the double bounce maybe, but a lot less in Jersey tax revenues this year is going to be a very real and serious concern.

I agree with you both, I am not a doomsday merchant but try to be a realist. Accept understand the problem, then you have a better chance of getting the solution right. Don't spend money you do not have certainly in these uncertain times.

BB   

Offline Calimachon

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Got a crystal ball have you?  What about the current thoughts about the double dip?

Cali >:(

I must say I find this ladies approach encouraging.  Different strokes for different folks. 

"We are not suggesting there should be fiscal consolidation across the board," Ms Lagarde stressed.

http://www.bbc.co.uk/news/business-16771939
TOMORROW (Noun) = A mystical land where 99% of all human productivity, motivation an achievement is stored