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UK Deposit Scheme Underfunded

September 25th, 2007 by Stephen Roman

“There is the government and there is the market. There is no third option.” – Mises

Sounds like they are taking lessons from the pension managers here. They should have let Northern Rock collapse:

Analysts said reports that the UK’s deposit protection scheme might not be enough to pay for the government’s plan to guarantee consumers’ deposits up to £100,000 pounds weighed on the currency.

The UK’s Financial Services Compensation Scheme’s resources were estimated at only £4.4m – compared with a comparable fund of $49bn in the US.

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