?? Big bank collapse

neil324

Yant1 wrote: »

Yep the governments are inflating out of the crisis.

Without wage inflation?

ad44downey

sabretoothtigger wrote: »

A bs wont have any of that sub prime american 'toxic' debt afaik

Britannia BS did. And a few other BS's did too.

sabretoothtigger

Really, wow Still limited in its amount by the rules I would guess, I'll have to read up on that one


inflation is no solution surely?

but

Debtors may be helped by inflation due to reduction of the real value of debt burden.

http://en.wikipedia.org/wiki/Inflation_(economics)

ad44downey

yorkshire BS sub-prime losses:

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=434332&in_page_id=7

opinions4u

Building societies can raise up to 50% of their total funding away from depositors money. Few banks actually raise more than 60% this way, so the difference is quite narrow.

Banks tend to have a wider asset base (corporate lending, proper business banking etc), which suggests that the building societies have a more concentrated exposure.

The worst hit shares are, generally speaking, the mortgage banks such as Bradford & Bingley, Alliance & Leicester and HBOS, as their business models are perceived to be too heavily exposed to UK mortgage lending (although HBOS has significantly broadened itself with the Halifax/Bank of Scotland merger).

This could mean that a building society that has dabbled in sub-prime, lent inprudently in the UK and perhaps only has 50% of its asset base backed by deposits could be at threat, possibly moreso than a more diversified bank.

Not saying this will happen, but the coat of mutuality may be a protection to some of these building societies and the death knell of others - where other organisations will be obliged to take them over with little or nothing in the way of carpetbagging payments to members.

Let's see how it pans out.