Bank depositors lose cash
A HANDFUL of depositors in a Portsmouth-based bank, which was dissolved yesterday, will be the first to lose some of their savings, days after the chancellor signalled he would get tough on depositors.
Southsea Mortgage and Investment went under, leaving 250 savers asking for their money back from the government’s guarantee scheme. The Financial Services Authority and the Bank of England have intervened and initiated the Special Resolution Regime where distressed banks are forced into insolvency.
The bank’s savers, with a total of £7.5m retail deposits, are covered by the £85,000 limit insured under the financial services compensation scheme (FSCS). But 14 customers hold more than the £85,000 limit, and will be the first to lose some of their savings after George Osborne pledged to take a tougher stance on despositors in his Mansion House speech.