It's not a fun time to look at the stock market, every day the market seems to fall by a rather large amount and some bank is in trouble.
At the moment an Icelandic Bank called Landsbanki is in trouble and for those of you who don't know it trades in the UK as Icesave. I had seen this bank for a while at the top of the savings tables and wondered who the hell Icesave was. Savers will now have to claim back money from the Financial Services Compensation Scheme (FSCS) I guess.
Although the banking industry has to bear a large chunk of the blame we also have to look at ourselves. In the 1990's we all clamoured to get a chunk of the latest building society to demutualise. Why? So we could get a quick turn on the shares. Of course what we didn't care about is that these new banks would no longer be driven by the customer but by the demands of shareholders.
And how many of those demutulisations exist today? Uh none. Halifax is being saved by Lloyds TSB (who took Woolwich and C&G ages ago) and Abbey, Alliance & Leicester and Bradford & Bingley are Spanish.
So perhaps its time to support our Building Societies. Building Societies aren't interested in it for profits but are are owned by their customers who get the profits. Makes some sense to me.
For a list of Building Societies