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VIRTUAL BANKING

Let us say that you are running a business lending people money.

You have shareholders, whom the law states you must serve, before all others.

You have a business pal to whom you lend £1,000,000,000 because he is in trouble.

Your pal goes bust and you lose £1 billion.

You shareholders get cross. What do you say to your shareholders to save your job?

"Do not worry chaps, I only pretended to lend my pal £1 billion . The trouble was that he needed at least ten times that amount, to save his business. We should have pretended to lend him £10 billion. We have lost nothing, merely a good customer gone down the drain."

How else do you explain, the UK banks ability to write off £1 billion owed to them by Marconi, and not turn a hair?