Sean\’s Sicily

Just another weblog

Trusting banks…

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What with all the news about banks failing and people losing money, Sonia asked her dad if he was sure his pension money was safe.  Ignazio made a rude gesture – his bank had called him up one day and asked if he was interested in a placing his money in a high-earning “AAA” rated investment vehicle.

He told them that he’d go into the branch the next morning.  Which he did.

And he took out all his money and lodged it in the Post Office.  Screw the bank.

As an accountant by trade, he knew where his money should be – safe.  And he knew that he couldn’t trust the bank.  Unlike a lot of other people.

Because when your bank tells you that your money is safe, you trust them, right?

That’s the point of the whole rating system – “AAA” is safe safe safe.  But the raters were asleep on the job, the “AAA” rated funds were made up of AAA mixed with junk.  Now, in the InfoSec security, we know that a system is only as trusted as the least trusted element in it.  Banks apparently forgot that axiom and peddled their “safe” products to all sorts of unsuspecting people, including a lot of pensioners who are now screwed.

That’s the real crime here, folks.

As for Ignazio’s pension money, that’s sitting in a low-interest account in the post-office, backed by the government.  Screw the bank.

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Written by seancasaidhe

March 11, 2009 at 10:31 am

Posted in Business, Italy

Tagged with , , , , ,

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