Germany in 2008: The US investment bank Bear Stearns is in trouble, IKB, West LB, Sachsen LB too. And German savers trust their money like no one else to an Icelandic bank called Kaupthing. Because it offers the highest interest rate. Things went wrong, cost investors nerves, but in the end most of them got their deposits back with interest.
Germany in 2021: Europe is groaning under negative interest rates, but a bank with Australian roots called Greensill offers passable plus interest rates. Once again, Germans are at the forefront of entrusting their money to this bank – including public television stations and municipalities. Things went wrong. Private investors were compensated.
It shows the imbalance between risk and return. There are risks, especially when interest rates are offered far above market levels. But the risks are mutualized so that there is no panic in the market when a bank becomes insolvent and many savers run to their banks and want to withdraw their money out of fear for the deposits. However, this is not ready for collection, but is often given elsewhere as a loan. The financial system began to falter.
Anyone who carries their money to a maximum interest bank should have this in mind. He runs Brett at the expense of the rest of the financial community. In the case of the Icelandic deposit insurance scheme, it was pointed out whether the deposits would be repaid. Currently, interest rate offers from the Baltic States and Sweden are ahead. Insolvency not excluded.