Comments on: Finance Minister On Deposit Insurance Scheme

By: SMH

SMH — Sat, 18 May 2019 18:03:05 +0000

No Jane I got your point… my point was that your working under the assumption that we’ll always have a government that will do the sensible thing.

By: Jane

Jane — Fri, 17 May 2019 19:19:09 +0000

Most money in banks does not exist which works just fine as long as deposits keep growing – it’s called the multiplier effect:

Deposit $100.00. The bank lends out $90.00 of it, keeps 10% in reserve.Very soon that $90.00 is back in the bank, deposits therefore total $190.00. The bank then lends $81.00, keeping 10% in reserve. The $81.00 of course eventually ends up as deposits again, total deposits now total $271.00… All from that initial $100.00 bank note deposit. So the question that no one can answer is – does that extra $171.00 exist or is banking just a sophisticated Ponzi scheme…

Problems arise when more starts being taken out than is good no in.

By: Jane

Jane — Fri, 17 May 2019 19:08:48 +0000

You entirely missed my point – no Government is going to let a bank go bust (even if they should), as the economic disruption and jurisdiction reputation damage are simply too great. The bank might be Government owned for a while or simply bailed out with a large guarantee and (mostly perceived white) shareholders wiped out – as was the case with BNTB. So this entire exercise is simply sinecure jobs for the Alaska Hall insider clique…

By: frank

frank — Fri, 17 May 2019 16:51:07 +0000

I thought that banks were required to have funds to back up what was help on deposit

By: SMF

SMF — Fri, 17 May 2019 15:00:30 +0000

The last time I checked, the if the banks went bust yes the government can step in but they are not legally obliged to keep them afloat. Insuring deposits like they do in the states up to $100,000 do things like prevent bank runs in case of a panic and adds a level of stability. As you said,” in the highly unlikely event of a payout” wouldn’t you like to at least have something come back to you instead of nothing? I’ll admit that 25K doesn’t seem like a lot of money, but it is a step in the right direction. Also keep in mind that if all you had is 25K and now it’s gone… that’s a lot of money. On the flip side the folks with lots of deposable income aren’t going to let it sit up in a bank account, their money would more than likely be busy “working” so this scheme isn’t really geared to them as it would be for the average Joe Blow walking the street (but the article said that). To be honest I’m surprise we had never done it before and it’s my hope the finance minister comes up with more mechanisms with some even geared towards those folks with lots of disposable income as this one is for the “little guys”.

By: Double S

Double S — Fri, 17 May 2019 13:35:52 +0000

“Commenced operations in 2016.”

Who was finance minister in 2016?

By: nabba jabba ding dong baby daddy

nabba jabba ding dong baby daddy — Fri, 17 May 2019 11:26:38 +0000

You cannot keep buses running on time , (which had been done for decades before you) , Nor proper trash pick up. Nor pave roads properly.
Duty alone is more money than is needed to run this country better than it is currently.
What a tangled web we weave when we practic to deceive.

By: nabba jabba ding dong baby daddy

nabba jabba ding dong baby daddy — Fri, 17 May 2019 11:20:27 +0000

I will not bank in any insitution that is involved with a credit union or a govt.

By: Sailor

Sailor — Fri, 17 May 2019 10:22:51 +0000

it started in 2016.

By: Kathy

Kathy — Fri, 17 May 2019 09:30:05 +0000

…and why only on BMD accounts?

By: Kathy

Kathy — Fri, 17 May 2019 09:27:11 +0000

$25,000????? That is it? The minimum in the USA is $100,000.

By: Jane

Jane — Fri, 17 May 2019 09:16:36 +0000

Two points to make:

1. More civil servants spending the country’s wealth rather than creating it – all for petty politics. The reality is that if a bank went bust, no more than BNTB a decade ago, the Government would have to keep it afloat and then find a buyer. This little red herring is exactly that, more so called jobs for the gang.

2. In the highly unlikely event of a payout, 25K BDA does nobody any good. All the big money depositors will be so distressed that they will simply collapse the entire economy until they get their money.

This whole thing is dumb, pretentious exercise in rhetoric at taxpayer expense.

By: Wahoo

Wahoo — Thu, 16 May 2019 22:38:47 +0000

Yes thank you very very much for looking out for us lot. Please continue to create more taxes.

By: Paul

Paul — Thu, 16 May 2019 22:19:48 +0000

Thank you so much finance minister,you are looking out for we Bermudians.

By: question

question — Thu, 16 May 2019 20:18:04 +0000

Of course the BIU Credit Union is in there.

Do they ever file audited financials? Why is the government guaranteeing a fly-by-night bunch of amateurs?