Money Under the Mattress?

My grandparents in Kansas lost their first house during the Great Depression and I grew up hearing about not trusting banks.  While my parents certainly used banks, and had a mortgage, my mom kept wads of cash in a coffee can in a cupboard -- this was the '60s, before credit cards were common.

In my career years working for giant insurance companies, stuffing money in mattresses (or coffee cans) seemed quaint at best -- bordering on paranoia.  However, in 2008 came 'The Crash' and masses of people once again lost their homes and savings.  Perp walks of former 'Masters of the Universe' graced the front pages.

So where are we now, after 5 years and many mea culpas?  Read Floyd Norris' article in the NYT (Business Day - 11/1/13).  As I understand it, a Libor  (London interbank offered rate) scandal in 2012 cast Barclays as the villian, and now Rabobank has fessed up to bad banking.  Fines have ensued -- a new head has rolled -- six countries have "moved some chairs around" -- and everyone is going to behave!

The fraudulant practices included traders bragging that while they were bad  boys, there were much bigger crooks in the market!  

My twenty-something daughter discovered many hidden fees and provisions when she went to close a business account, and her view of banks is not printable on this page.  Looks like the mattress, or the can in the cupboard, might be making a comeback.