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Tuesday, March 19, 2013

The Cyprus raid on banks makes putting money under the mattress seem a wise move.

The significance of a situation really hits you when events happen in quick succession. I have just walked up Queen Square in Wolverhampton, passing a number of travel agents on the way. Sale banners tell me of bargain holidays to Cyprus. Fast forward a few steps into bank land in the square and I see a queue at an ATM. Makes one think!

The Captain Mainwaring ( Dad’s Army ) version of the bank disappeared forty years ago. Our 2013 hapless banks, now have a reputation so low that it is hard to think of things getting worse, and then along comes Cyprus.

How would you feel if on £100,000, 3% was siphoned off by the very people you entrusted your money to. I thought with deposits they are supposed to pay you. Makes the ordinary bank robber look good. At least you know where he is coming from.

Banks summarily taking money from your account would be shoplifting in any other walk of life. Add the collapse of banks in 2008, continued bankers’ bonuses and the reluctance of banks to lend to business and we have a heady cocktail. This is an industry in real need of reputation management.

Storing money under your mattress may have been the subject of ridicule in the past - today it might just seem like common sense