OK! let’s not make jokes about the fact that depositors at ICESAVE Bank in Iceland have had their money “frozen” as the parent Landsbanki goes into administration. This is serious stuff!!
I remember a few years ago I was at a Madrid hotel when one of my business colleagues had her handbag stolen. An insurance industry colleague also there explained how he could never understand why women used handbags. “When i travel” he explained, ” I put my passport in one pocket, my credit cards in two others, my front door keys in an other etc etc”
“Typical for an insurance man” another colleague joked.” Spreading your risks like usual!”
In these turbulent times, when even banks look decidedly shaky, I think my insurance friend would give good advice. If you’re looking at depositing money, don’t put it all in one institution. Spread it round. In this passage of economic turbulence, nothing should be taken for granted.
It’s the same for businesses too- spread your risk. I heard of a company last week that got into serious cash flow problems because 90% of its sales were made to one large corporation that was paying way beyond the contracted payment terms.Different scenario, but the business logic remains the same.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children