THE big five banks are in difficulties because they have tried to make money in the US. The Government keeps saying there has been nothing like this for 60 years, and no one is to blame because no one could see it coming.

Has everyone forgotten how Midland came to merge with HSBC in 1983? That was only 25 years ago.

Midland tried to buy Crocker Bank of California. It lost all its money. In the final outcome, Crocker was sold on and Midland was forced to keep all of Crocker's debts. Midland was in such difficulties after the failed Crocker Bank deal, that HSBC bought it and took them over.

The British banks always lose when they try to make money in the US. The Americans see them coming and always take them to the cleaners. Just because we speak the same language, our interests are not always the same.

The present difficulties of the big five high street banks were entirely foreseeable. The Government and the regulators are wrong when they say there has been nothing like this for 60 years.

The example of the downfall of Midland Bank is a clear recent lesson which the regulators and this Government failed to learn.

Nigel Boddy, Darlington