A prediction

sadabbott

Reaper wrote: »

2) Another British bank will go down and this time the government won't save it
3) That bank will be Royal Bank of Scotland.

The queen will save the Royal Bank of Scotland. It is a Royal Bank.

silvercar

sadabbott wrote: »

The queen will save the Royal Bank of Scotland. It is a Royal Bank.

I hope so!

My company money is in it, possibly unprotected, and I can't transfer it to my name without a 40% tax bill!

Ian_W

silvercar wrote: »

My company money is in it, possibly unprotected, and I can't transfer it to my name without a 40% tax bill!

Actually silvercar that's why Her Majesty [or in reality HMG] would do everything possible to prevent a bank like RBS going bump.

Some sit around collectively staring at the bumf in their belly buttons and wondering if savings are safe and forget that current account and, arguably far more importantly, BUSINESS banking would be an even bigger issue with a mainstream bank.

Thus far the 2 nationalised, wholly or in part, were small mainly savings and mortgage ["toytown"!] banks. HBOS and A&L, who have much more current and business banking, are forced into merger/take-over situations.

How many large businesses would be effectively bankrupt unable to pay their bills or employees if a big bank they had their money with went bust? It wouldn't just affect those who banked with "A" bank either, think of the effects on cash flow to local authorities, utilities and many other co's and organisations if 10,20 or 30% of the population suddenly lost their current account and the ability to pay by Direct Debit, Debit Card, cheque etc for goods and services.

Be cynical if you want - but whether it's a Scottish bank or not has sod all to do with it. The very immediate and drastic affect on the economy would be so grave that no government could just let it happen. The costs of nationalising a biggy would be huge but the cost of not doing so would be so many times greater. :eek:

If the latter were to happen, and I don't believe it will, forget the FSCS as your money would be worthless - though if you had plenty of notes you could use it for fuel this winter!

Reaper

ianmr65 wrote: »

I agree that RBS looks shaky... Robert Peston said last week that a UK bank that was not Lloyds or HBOS was within a couple of days of serious liquidity problems. And that the BoE had to relax collateral rules to rescue it. He declined to name it, and the item seems to have dissappeared from his blog... My guess is that he was talking about RBS!!

Last night on the news I saw Peston rubbing his hands in glee at Iceland and other European economies that were in trouble - reporters love a good crisis and wallow in bad news. Yet he deletes a mention of an unamed UK bank in trouble from his blog?

Top marks for patriotism, no marks at all for objective reporting.

martinman3

StevieJ wrote: »

Interesting that a poster can suggest RBS will go bust, with no criticism but if someone suggests the same of Icesave all hell breaks loose.

Yes, there is now a lynch mob in this forum ready to attack anyone who wants to withdraw money from Icelandic banks.

And to those people, you may think you are helping the banks. Meanwhile, just think of all the other depositors who don't visit this forum and don't have the benefit of your wisdom.:rolleyes:

martinman3

Ian_W wrote: »

How many large businesses would be effectively bankrupt unable to pay their bills or employees if a big bank they had their money with went bust? It wouldn't just affect those who banked with "A" bank either, think of the effects on cash flow to local authorities, utilities and many other co's and organisations if 10,20 or 30% of the population suddenly lost their current account and the ability to pay by Direct Debit, Debit Card, cheque etc for goods and services.

If you really want to know, many building societies use Natwest(RBS) for their banking. Imagine what would happen if the cash deposits held by Natwest were lost and what it would do to the finances of those societies.:eek:

Ian_W

Reaper wrote: »

1)[strike] Icesave won't go bust or need to be taken over[/strike] Wrong!
2) Another British bank will go down and this time the government won't save it
3) That bank will be Royal Bank of Scotland
4) The government will compensate savers 100%, even those with more than £50k
5) An Irish bank will also fail within the next 3 months. Savers will get 100% of their money back.

So if I'm right taking money out of Icesave and giving it to UK/Irish banks would be a poor move.

Reaper,
Erm, care to reconsider 2) and 3) - at least for the foreseeable future?