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During last 5 years 2 banks have went bankrupt in my country (Lithuania), so I can assure that this insurance works really well here, everything went orderly an
by kbart 10y ago
During last 5 years 2 banks have went bankrupt in my country (Lithuania), so I can assure that this insurance works really well here, everything went orderly and individual depositors received their money promptly (in about a week if I remember correctly).
- dogma1138 10y agoLithuania nationalized the shares of it's failing banks, which was in effect a bailout. When Snoras failed your government bought out 100% of it's shares and facilitate the recovery of the deposits. http://www.baltictimes.com/news/articles/30019/ http://www.baltictimes.com/news/articles/30019/ So this isn't a case where a government let a bank fail, this is the traditional bailout mechanism for failed banks - the government buys them out. This is what Latvia did with Parex, what the Netherlands did with SNS and Fortis, what portugal did with BPN and the list goes on and on and on. For the most part no one let a bank fail the same way that the US did with LB, and no one would really want to try that with a commercial high street bank.
- kbart 10y agoAh, my bad then, I wasn't much into details, the titles on most media was literary "Bank X went bankrupt".