For the first time since the 2008 banking crisis, the government has not stepped in to provide a blanket guarantee for all the savings at a failed bank.
As the repercussions of the banking crisis reached Havant, in Hampshire, where a small bank was declared insolvent on Thursday, the 250 or so depositors were left to asking for their savings back from the government’s guarantee scheme.
Southsea Mortgage & Investment Company ran into difficulties after clients defaulted on property loans and caused the Financial Services Authority to initiate the special resolution regime, put in place by Labour after the credit crunch to make it easier to wind up banks. The SSR has only been used once before when Dunfermline building society ran into…