The European Union is drafting a law which will make losses for larger savers a permanent feature of any future banking crises. (They looked at Cyprus and they liked what they saw!!). However, they also say “Depositors should be the very last to suffer losses when a bank collapses.” This type of “double-think” is another example of the legislators failing to deal with fundamentals. The Root Cause of past , present and future banking crises is very straightforward. It is the banks’ headlong rush for profits which can only be achieved through sucking cash out of the real economy. Banks should NOT be making such vast profits – all they really need is a reasonable operating margin. Banking is a business whose only TWO functions are to protect and redistribute money. Currently, they are doing neither very successfully.