Latvian Banking Troubles Again

Latvian banking troubles return!

I have never been a fan of banks, nor do I really want to know what they do with my money, as long as they keep it safe, I shall pretend that the world is all roses and chocolate. The fact is, today I actually realised that I need to know what is going on in the banking sector and is my money really safe?

Luckily for me, I have no accounts with the now doomed Krajbanka, which it seems is at a point of no return after Latvia’s suspension of services brought in last week. This has all happened because, according to reports, the Lithuanian Central Bank think that millions of euros of assets could have gone missing. Krajbanka is a subsidiary of Snoras Bankas (Based in neighbouring Lithuania) which has now been seized by the Lithuanian government.

Hang on a minute! Millions of  euros! How do you loose millions of euros! Well, without going into details, arrests have been made at the high end of Krajbanka and reports of luxury cars and private villas emerging in the press. So it seems, banks are not safe or at least potentially run by stupid thieves.

So today, whilst visiting my happy Orange Swedish Bank, over a security feature they have installed on my account without me knowing. I sat with my ticket in hand, thinking “Where is my money?” For sure I realised that it was not held in gold bricks in a large safe, nor was it stacked in paper, so where was it? Where is it? I can see it on the internet, I can see it at the ATM but I realised, there is no ‘Personal banking’ All of our money is in one large electronic pot of gold in Sweden and what my happy Swedish bank does with my money I have no idea!

So what to do? Do I need a bank? Well the answer is “Yes” I’m stuffed without one, cannot pay my bills, buy my goods, pay the tax, loads and loads of areas where cash, simply will not do. I felt helpless but thanked my over active brain for making the wait to see a cashier pass by faster.

After staring at my ticket (that looks the same as the ones you get at the deli counter, except here there is no nice tuna salad at the end), blanking out the baby screaming, ignoring the ugly orange decor of my bank, I decided “You know what, you’re better off not knowing about banking but remember what you learned as a kid, do not keep all your eggs in one basket”

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