Banks collapsing. How long do you have between warning signs and it happening?

bo_drinker

So who's next then ???

greenface

Be a funny one if 30+ or more people "just for a laugh" started a queue outside a prominant bank or BS at about 7.30 am. Just as the joe public were going to work. I wonder how long the queue would be at 9.00

Banderman

bo_drinker wrote: »

So who's next then ???

Presumably A+L, then HBOS, and god only knows who after that.

dunstonh

HBOS worries me. Not to collapse level but no longer being a long term viable bank that will probably be taken over after years of little or no investment internally.

Clerical Medical recently stopped trail/renewal commissions on a number of plans to IFAs where they believed no servicing was taking place. (press release last week). This has never been done before by an insurance company. Clerical Medical gave the excuse that if advisers were no longer servicing then they shouldnt be paid this money as its not treating customers fairly. Whilst that seems quite fair and reasonable, it is complete bull as Clerical Medical are not reducing the charges or improving the terms by rebating that trail commission to customers but keeping it for themselves. So, in reality its just going to raise capital for Clerical Medical. Relevance is that Clerical Medical are owned by HBOS. Do CM have to run the risk of losing new business because funding from the parent company is unlikely to come in future and need to secure more funding for themselves?

chopperharris

Its my understanding that there has been no real taxpayer money actually spent on northern rock , thats a misconception.

Its under a umbrella of the government , its a promisory note , and only that all depositted funds will be covered....We havent had our taxes bail out nr , its merely propped it up till its back on its feet or sold off , and that any money spent by hmg doing so HAS to be paid back asafp.

It was , despite mervyn saying otherwise, the IRRATIONAL people acting like sheep , coralled by scaremongering sheepdogs in the media.90 percent of the accounts would have had all , if not nearly all , of their money back as part of the regulatory membership required by law , deposits are covered by insurance.IF it wasnt for this then no one would have really known otherwise about spreading savings between institutions.

MSE has to be both applauded and denounced in the NR reporting on here.Applauded for its factual approach of this forum towards spreading savings between institutions.Denounced in such that theres as much disinformation on here , that can have an adverse effect on readers beleifs in that all posts are indeed facts , rather than opinions , opinions which are taken as fact by its readers.

Shareholders will have to take a dunt , there is risk in shares , they knew that , and were eagerly willing to take that risk for that is part and parcel of shares.If divis are offset , assuming there is any from these shares , then nr will not go under...but the depositors , the savers , should not have to bail out a greedy bank , that is the shareholders responsibilty.

IF i had money in nr I would most likely have been a sheep also , hard earned should not be easy lost.

With hindsight the best course of action would have been a lock on the NR for two days by the govt , no in and out of money , shares suspended.Then used the same news that created the histeria to explain everything , just like they did , but ensuring that everyone knew their money if under the threshold was 100% safe....ironic really that its now the safest bank on the high street for savers because of this.

long post sorry.

[Deleted User]

Deleted_User wrote: »

If B&B went the way of the pear what would happen to a £3600 cash ISA? How quickly do people think the FSA would pay out and I'd get my money? What about the interest earned so far this year? What about the lose in interest between getting my money and them going under?

Anyone?!??

chopperharris

Deleted_User wrote: »

Anyone?!??

cash isas are covered by the banking scheme , time though is another thing , at most from the last I read would be under 4 months to 12 months tops.I doubt it includes interest accrued , which would be less important than getting the whole amount back.

b&b wont go belly up overnight if at all , and isa is safe , so why the worry?

drumming up a run?;)

Masomnia

Deleted_User wrote: »

Anyone?!??

No one can really be all that sure because it's never happened, but I'd imagine a few months. In any case, don't worry.

bo_drinker

Is any of them a safe bet. I know N R is as it is govt backed, but are there any real safe bets who are holding their own in these times of woe.

Masomnia

I hear Lloyds TSB and HSBC are going to fair better, since they have less exposure to the sub-prime mortgage markets and the buy to let mortgages, but I don't think anyone is really sure.

Neither of them have market leading rates, esp. Lloyds TSB. So you have have to decide whether the supposed extra safety is worth getting less interest.