FSCS raise limit to £50k

ed123_2

....I think the speed of compensation is a key factor, Darling has been seeking settlement in 7 days while the banks are trying their usual delaying tactics........6months?, 1/2/3 years??????????

Patr100

The FCS site says it could be up to 6 months to settle while the Passport scheme says EU regs "should" make it no more than 3 months.

Fella

Oblivion wrote: »

The BBC's reportage of the £50k limit news goes on to say that the FSA will be consulting on the possibility of raising the limit further, and also looking into the problems currently associated with some financial institutions falling under the same FSA licence.

Typical NuLabour spiel. Lots of smoke & mirrors designed to make what's actually a minor change look like a lot more.

Let's face it, this only affects the relatively small band of savers who fall exactly into the >£35K but <£50K savings band.

No-one with less than £35K will care & no-one with more than £50K will be reassured (quite the opposite in fact, since this is yet further proof that deposits above the FSCS limit are not guaranteed).

All the while depositors are piling out of the very banks that are struggling & into alternatives i.e. those already nationalised or in Ireland. Utter hamfisted bungling by Brown once again.

I notice he's just promoted Mendelson & Beckett among others. My word that's a monstrous bunch of people we've got running this country. Presumably the cast of the Thriller video weren't available.

GustyGardenGalaxy

Just out of interest, how are the 'rich' folks out there coping with all this? I mean, if they have many hundreds of thousands or even millions of Pounds it will be impossible for them to spread it around many accounts for the £35K (soon to be £50K) cover. So what do they do?

isofa

Etccarmageddon wrote: »

or over the weekend?
maybe HBOS bordering on being nationalised?
or Lloyds TSB bottling out of taking over HBOS?

- Not much trading happens over the weekend!

- HBOS being nationalised would be a very last resort, and unlikely... but never say never.

- LTSB will need to be convinced, but I'm sure behind closed doors it's virtually a done deal - government have moved all sorts of obstacles to usher it through. Pity, I wish they weren't having anything to do with HBOS.

Fella

GustyGardenGalaxy wrote: »

Just out of interest, how are the 'rich' folks out there coping with all this? I mean, if they have many hundreds of thousands or even millions of Pounds it will be impossible for them to spread it around many accounts for the £35K (soon to be £50K) cover. So what do they do?

Most of those people tend to keep their money in shares rather than cash. So at the moment they drink.

dunstonh

No-one with less than £35K will care & no-one with more than £50K will be reassured (quite the opposite in fact, since this is yet further proof that deposits above the FSCS limit are not guaranteed).

All those with more than £35k with B&B got their full deposits protected with the use of the FSCS.

The problem is that there is a perception that individuals will have to send a claims form in, which is normally the case, but the Govt have taken the approach of using the FSCS at corporate level as a sweetener.

GustyGardenGalaxy

Fella wrote: »

Most of those people tend to keep their money in shares rather than cash. So at the moment they drink.

They must be bricking it.

Fella

dunstonh wrote: »

All those with more than £35k with B&B got their full deposits protected with the use of the FSCS.

Interesting point regarding that: It appears that the Government have guaranteed 100% of B&B deposits, however unlike with Northern Rock, it's the members of the FSCS that may ultimately have to stump up.

Now if I were the board of, let's say, a small well-run Building Society, I would be questioning why I had to potentially contribute to a 100% bailout of a badly run bank, when all I ever signed up to was a scheme that offered a £35K guarantee. I wonder if there is the potential for a legal challenge?

isofa

Fella wrote: »

Typical NuLabour spiel. Lots of smoke & mirrors designed to make what's actually a minor change look like a lot more.

Let's face it, this only affects the relatively small band of savers who fall exactly into the >£35K but <£50K savings band.

No-one with less than £35K will care & no-one with more than £50K will be reassured (quite the opposite in fact, since this is yet further proof that deposits above the FSCS limit are not guaranteed).

All the while depositors are piling out of the very banks that are struggling & into alternatives i.e. those already nationalised or in Ireland. Utter hamfisted bungling by Brown once again.

I notice he's just promoted Mendelson & Beckett among others. My word that's a monstrous bunch of people we've got running this country. Presumably the cast of the Thriller video weren't available.

Couldn't agree more - what a bunch. I shuddered earlier at the thought of the sinister Mandelson being brought "back on board", I can console myself that Private Eye will enjoy his return in the best satirical way possible.

Fella - really enjoying your posts. :beer: