The Northern Rock crisis was due to the bank incurring debts that wiped out a large percentage of the money that investors had put on deposit within the bank.
Why the hell are banks allowed to gamble investors money - surely the law should say that an investors secured deposit means the bank should retain enough liquid capital to cover money owed to investors in the event they wish to withdraw their money.
Gambling with investors money without their permission is simply stealing - it is dishonestly appropriating the property of another without their permission and then gambling with it. Investors leave their money simply on deposit - they do not give banks permission to gamble that money without their permission.
If banks want to speculate then fine - but let the directors be personally liable for the losses and not the investors when they cock it up with their greedy little shylock money schemes.
We should make this a BNP policy as regards banking rules ;
No bank will be allowed to use investors deposited capital that has been placed in secured deposit accounts for any unauthorised investment schemes or other financial transactions that expose those deposits to any adverse risks or potential losses without express permission from the depositor. In the event of any bank using an investors capital for any reason and for any purpose without express permission and the bank then loses that secured deposited money, then the directors of the bank are to be held personally liable for the losses of any deposited monies owed to investors and their personal assets may be seized and used to recompense the monies owed to the investors.
That should stop the greedy bastard directors of these banks gambling with other peoples money - when they realise that they will be forced to sell their houses, lose their sports cars and holiday homes and be left destitute instead of the investors who trusted them with their money then they will think twice before they indulge in any more infantile investment schemes.
The Bank of England should also be prohibited from releasing any tax payers money to support those shysters that lose investors money - instead of the bankers all playing the Banking Cabal game and looking after each other , how about looking after the investors andf the tax payers first.