Banks worry about the latest bankruptcies
The frantic search for revenue induces the Government to think of taxing the extra profits of the banks. Nothing to complain, except that our savings are deposited right there and any extra profits should be set aside to deal with future problems. The ECB continues to maintain that credit institutions are in good health and if by chance there were problems it is able to intervene promptly. I can agree with this too, but the doubt always arises that our savings, unfortunately, are not safe.
What I mean? The latest events see banks in total bankruptcy (the day before they were at the top the day after they require management protection), managers who don’t give a damn about the balance sheets of the administered banks and fill themselves with bonuses (more or less in the light of the sun) and almost certainly they won’t go to jail, anyway then there will always be someone who will pay the bill. For years I have insisted that there is a dichotomy between the bank’s balance sheet and internal management.
As for savers we know that deposits are “insured” for a maximum amount of 100,000 (one hundred thousand) euros, the rest is subject to bail in. The question is: why? Let’s start with article 1834 of the Civil Code which reads: “When depositing a sum of money with a bank, the latter acquires ownership and is obliged to return it in the same monetary form, upon expiry of the agreed term or at the request of the depositor, with observance of the notice period established by the parties or by custom. Unless otherwise agreed, deposits and withdrawals are made at the headquarters of the bank where the relationship was established”.
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