FSCS raise limit to £50k

Fella

cvd wrote: »

Because if there was a complete financial collapse of several banks, Brown could not honour it.

Of course, the Irish government could not honour their guarantee if there was a financial collapse in Ireland.
So the evidence seems to be that it is better for governments to lie.

PS I have more than £35000 (indeed more than £50,000) in more than one UK institution and I am not worried at all. On the other hand, I would be really worried if I had several million in an Irish bank or some UK banks.

Well technically of course, Brown COULD honour it if he wanted to. He has the option of printing more money.

Interestingly the Irish banks have chosen to guarantee sterling even though they CAN'T guarantee that....

But regardless of the possible scenarios the fact remains that until or unless Brown guarantees more than £50K then £50K is all that's guaranteed.

Anyone who thinks that this Govt WON'T have done their sums & worked out exactly how many people have >£50K in savings.....exactly how many votes they could afford to lose.....& exactly how many of the rest would care less about those people "lucky enough to have £50K" if they did lose anything above that........does not understand the nature of the beast.

The reality is that losses are unlikely but it's stupidly bad, dangerous advice to tell people there's no risk. The fact is there is & no amount of ramping bank shares or trying to blame the current crisis on "the meeja" will change that.

setmefree

more to the point, has the money been raised to a higher level because 1.they dont want people withdrawing their money. 2 should people withdraw their money and it ended up in a Banking Industry Failure,there wouldn't be the money left to compensate everyone.

dunstonh

setmefree wrote: »

more to the point, has the money been raised to a higher level because 1.they dont want people withdrawing their money. 2 should people withdraw their money and it ended up in a Banking Industry Failure,there wouldn't be the money left to compensate everyone.

It is either to win back confidence or to try and win votes on what is a popular measure, despite it actually making very little difference to the majority of people.

setmefree

dunstonh wrote: »

It is either to win back confidence or to try and win votes on what is a popular measure, despite it actually making very little difference to the majority of people.

For the first time in ages i agree with you, and i'm sure you will agree that if we do go into a down turn of industry, the money pot will soon run dry.. No work no revenue.

Also this is going to cause another major upset for Gordon Brown, You quite rightly said it will make no difference to the majority of people, but this majority will be having their hard earned Tax Money used to bail out those more fortunate than themselves in the event of a failure. so once again Mr Brown has rubbed it in the noses of the poor, much like the 10p tax situation.

Fella

ad44downey wrote: »

The precedent was set with Northern Rock. And reinforced with Bradford and Bingley. The government offers a £100%, no upper limit savings guarantee.

So forget all this £35K, £50K guff. Sit back and relax and get on with your life. Stop worrying! You're like a crowd of old women

ad44downey wrote: »

Actions speak louder than words.

How many savers in n rock or B&B lost any money? None

So why would you possibly suggest savers in other institutions would either? Have you any evidence to suggest otherwise? You're either just blatant scaremongering or very feeble minded.

Let's hope as few people as possible took your advice to "sit back & relax".

worldwheeler

isofa wrote: »

Although it's relatively meaningless, I still believe the UK should have done what Ireland did, then no more consumers would be panicking, and the banks could then get themselves out of a mess without people withdrawing all their savings.

As soon as people lose money from a deposit retail bank the end is in sight. The run on Northern Rock will look meaningless. The capital injection from the Bank of England will be used to pay withdrawing savings. Bang goes the liquidity and bang goes the banks. The governments need to underline a message that ALL SAVINGS are safe to prevent a run to end all runs. Otherwise there is no banking business when you have ZERO savers.
I am about to lose 40% of my lifes savings and I have zero trust in any bank. Live beyond your means, walk away from debt and die owning as much as you can is the NEW MANTRA.