You might argue that there would be some losers if customers created a run on a British bank, but if the customers were canny enough, the only losers would be the bankers themselves.

In a previous article about Bank Bonuses, we argued that if British savers got together and collectively withdrew their deposits, the Government and other banks would have to sit up and take notice.

Well that is precisely what happened with Dutch bank DSB. Encouraged by campaigner Pieter Lakeman of the Mortgage Grievances Foundation, who appeared on Dutch television on 1st October telling customers it was “in their personal and collective interest to take their money out,” the bank’s customers did just that.

That was on Thursday. Within hours the bank’s website collapsed as savers began to withdraw their funds. By the weekend the bank began rescue talks with other Dutch banks as funds continued to drain from it. On Monday afternoon the bank went into receivership. On Monday 19th October DSB was declared bankrupt!

DSB has since been taken over by Dutch central bank De Nederlandsche Bank.

Now this action might seem extreme, but it shows that it can be done. Bankers can be made to pay for their folly and gross mismanagement. In the case of DSB, 2,000 employees are expected to lose their jobs.

We’re not necessarily suggesting that British savers should actually take such a drastic course of action, but it would certainly make the Government sit up and take notice of the least deserving losers of the current economic collapse. British savers!

Join the forum discussion on this post - (4) Posts