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> Those banks also have access to the Bank of England as a lender of last resort Can you imagine a future where the independent Scottish government could arran
by falsedan 10y ago
> Those banks also have access to the Bank of England as a lender of last resort
Can you imagine a future where the independent Scottish government could arrange a similar deal with another financial institution, to cover them until ECB took on the role?
> Pegging your currency to another when you don't have the fundamentals to match it tends to be of interest to George Soros
When was Black Wednesday for Montenegro?
- cmdkeen 10y agoGiven that the European Central Bank doesn't act as a lender of last resort for individual banks (and really doesn't like being for the Eurozone, cf Greece) it isn't going to step in to cover Scotland. So you're either looking at another Government or perhaps one of the massive re-insurers, can you imagine what the insurance premiums would be on that arrangement? The much more likely alternative is that the Bank of Scotland and Royal Bank move their HQ to London. Standard Life (and therefore Aberdeen Asset Management) probably as well. Not all their staff will move, but their profits will and some highly paid staff will go. That will in turn have an impact on the nascent FinTech sector.
- falsedan 10y ago> the European Central Bank doesn't act as a lender of last resort for individual banks I do think they'd buy independent Scottish treasury bonds & then the independent Scottish government can use the proceeds for emergency lending. Isn't this how the German banks are covered?