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MSE News: Bank of Cyprus UK savers get UK protection

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in Savings & investments
"The bank's 50,000 UK savers are now protected by our compensation scheme, as Cyprus asks for a bailout..."
Read the full story:
Bank of Cyprus UK savers get UK protection

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Savers will bear the cost with the bank having to pay fees to the FSA.

    Seems as if banks are contracting across Europe with ever decreasing exposure outside their own country of domain.
  • squatlover
    squatlover Posts: 15 Forumite
    Well, its good that Cyprus asked for a bailout in that case, because they will have the money in a bank run.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    Like taking out medical insurance after they have fallen ill.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    squatlover wrote: »
    Well, its good that Cyprus asked for a bailout in that case, because they will have the money in a bank run.

    Que?
    Glen_Clark wrote: »
    Like taking out medical insurance after they have fallen ill.

    You mean, a bit like what Northern Rock, RBS and Lloyds did?
  • talexuser
    talexuser Posts: 3,526 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    We had an interesting thread about the request not so long ago where the eventual bailout may have been predicted. It sure has been arranged super fast. Being jokingly cynical I wonder how many of our top people had money stashed there out of HMRC which needed super fast protection? :rotfl:
  • OneADay
    OneADay Posts: 9,031 Forumite
    1,000 Posts Combo Breaker
    Cyprus only wants about 1 billion euro :eek:.

    Couldn't Greece lend Cyprus the 1 billion and make a small profit on the 100s of billions its had from EU and IMF.

    Greece could be the new IMF Mark 2.

    God I am a financial wizard!
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    My Greek Cypriot barber said Cyprus was doing great, not affected by the Greece situation at all, a few months ago.

    Now let's see whether the Cypriot bond holders suddenly get a "haircut" they didn't expect.

    Beware of Greeks bearing bonds. :eek:
  • oldvicar
    oldvicar Posts: 1,088 Forumite
    Thrugelmir wrote: »
    Savers will bear the cost with the bank having to pay fees to the FSA.

    Seems as if banks are contracting across Europe with ever decreasing exposure outside their own country of domain.

    Today its savers are eligible for FSCS protection. But how much has Bank of Cyprus UK actually handed over to the FSCS so far - I'm guessing that its nowt.

    Savers generally, with their money in banks which survive, bear most of theFSCS's costs.

    Savers with banks that are more likely to go bust, or actually go under, don't pay anything like the true cost or even a proper share of the 'insurance premium'. But they may unfairly enjoy unsustainably high rates of interest until the bank collapses or is rescued.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    oldvicar wrote: »
    Today its savers are eligible for FSCS protection. But how much has Bank of Cyprus UK actually handed over to the FSCS so far - I'm guessing that its nowt.

    Savers generally, with their money in banks which survive, bear most of theFSCS's costs.

    Savers with banks that are more likely to go bust, or actually go under, don't pay anything like the true cost or even a proper share of the 'insurance premium'. But they may unfairly enjoy unsustainably high rates of interest until the bank collapses or is rescued.

    Yup, very true, I had money in Kaupthing, got the best rates up to and beyond the bust and then all my money back, though think there were a few weeks when I couldn't get hold of it.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    oldvicar wrote: »
    Savers with banks that are more likely to go bust, or actually go under, don't pay anything like the true cost or even a proper share of the 'insurance premium'. But they may unfairly enjoy unsustainably high rates of interest until the bank collapses or is rescued.
    But the FSCS cover is only a side-effect of obtaining a UK banking licence. So presumably Bank of Cyprus UK, like Santander UK, must now conform to the UK's regulatory regime, for what it's worth, whatever the parent group might be up to.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
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