posted on Oct, 14 2008 @ 03:10 AM
this is where the confusion comes in. its not each bank that is covered by the government, it is each institution, which could include many banks.
for example the bank of scotland, the royal bank of scotland, the halifax and another few are all under one institution, so if you put £50,000 in
each and two went bankrupt you would only get one £50,000 covered, losing £100,000. so if you expand this to all banks under one institution you
couldnt spread your money around. im definatly no expert when it comes to money but it looks to me like the government is covering their backs so they
dont have to pay too much out if the worst happens. sorry if i didnt explain clearly in first post. its the use of the words BANK and INSTITUTION
[edit on 14/10/2008 by whoswatchinwho]