My savings in B&B!

Trollfever

How do savings held in The Isle of Man or say Jersey/Guernsey fit into the FSCS scheme?

julio69

The Isle of Man has a deposit compensation scheme, which only covers you for 75% of 20,000GBP, and that's it! With ref to my earlier post, I must have been in such a panic, it dissolved my brain - the penalty I would have to pay would be 593GBP, not 7,000GBP!!!

Spendless_Dosh

Most likely outcomes are :-

1/ B & B remain standalone and look for additional capital from their shareholders

2/ Another banking istitution purchases the B & B

3/ Government takes B & B into public ownership (e.g. Northern Rock)

In all three cases your money will be secure, I can see no scenario where the B & B will collapse, they have already stated that they have enough funding in place to carry them though 2009. The Govenrment will not allow them to collapse as the consequences for the rest of the banking sector are too serious.

Your money will be fine where it is.

EalingSaver

I doubt your option 1 very much. I would be very surprised if B&B sees out the year as an independant. But of course I am now likely to be proved wrong.:rolleyes: Its also unlikely that it will be bought by another bank, except with a hefty dose of goverment/BoE assistance/guarantees. Its share price/market capitilisation has collapsed so much that if it was an attractive potential asset someone would have put in a bid by now. Conclusion is that no-one wants to take it on without some government underwriting/help. Its loan book is just too much of a mess. Although now it's got out of (or significantly reduced?) its future GMAC (?) obligations, maybe it will become more attractive (though the share price failed to rally, and just carried on dropping instead).

Likely outcome: a takeover by another but with government assistance/underwriting of some form.

Still however GENERALLY agree with the "don't worry about it" - bottom line is that by the time we get to a position that the government has no choice but to allow a retail bank to literally fold we'll all already be in deep deep trouble.

However, the OP is in a slightly abnormal position from what I understood (i.e. amount is not fully covered). I didn't catch how much the OP would lose in the extremely unlikely event that it did fold. That is worth considering against the penalty. I would suggest they weigh up the impact of that act against the penalty if they pull out early. What if this is their entire savings? Then the impact of an exceptinallyunlikely event should at least be reasonably considered. But they should not be panicked.

julio69

Just found some answers on Times Online http://www.timesonline.co.uk/tol/money/savings/article4831821.ece
Sorry to be really naive, but when is there the possibility that you actually lose money - only if and when a bank goes bust, or could happen when it is taken over also?

vbrindle

If a bank goes bust, you're entitled to claim all your money up to £35k. If you have more than that in there, eg. £50k, you will lose £15k

If any bank is taken over nothing happens. You may be given new cards and may be walking into a different building for your money.

julio69

The problem for me is that my money is with B&B International, based in Isle of Man, which only covers 75% of 20,000GBP, which means I stand to lose 20,000GBP even under the compensation scheme! The articles I've read seem to all say, 'savers don't worry, you're covered upto 35,000GBP anyway', but Isle of Man savers aren't. The general feeling on this thread seems to be that the bank won't go bust and therefore I'm safe to keep my money where it is. My head's spinning!

napoleon

today's news just confirms what's been said all along. No B+B saver will lose anything.

All that scaremongering for nothing

Andrew64

But what is the legal status of B&B International? Is it a separate company to Bradford & Bingley? What jurisdiction is it registered under? Would the UK authorities be responsible for it or would it be the IoM's own financial authorities? You need to find out.

julio69

Good point. BBI say they are a subsidiary of BB, so their parent company would discharge any liabilities, plus any saver is protected by their depositors compensation scheme (maximum of only 15,000GBP). Does that mean if the government or anyone else take BB over, they would also be taking on BBI?!