How the FSCS paid out for Bradford & Bingley

jamesd

The FSCS paid out for Bradford & Bingley on 29 September, as part of the transfer to Abbey. There was no significant interruption of consumer's access to their money after the FSCS was triggered.

"8. The FSCS was triggered following the determination by the FSA that Bradford & Bingley was unable or likely to be unable to satisfy claims against it, prior to the making of the Transfer Order.

9. Under the Transfer Order, the FSCS has paid out approximately £14bn to enable retail deposits held in Bradford & Bingley and covered by the FSCS to be transferred to Abbey. The Treasury has made a payment to Abbey for retail deposit amounts not covered by the FSCS, amounting to approximately £4bn"

The FSCS payment was funded by borrowing from the Bank of England.

Similar arrangements seem likely if the scheme is needed again.

dunstonh

the FSCS payment was a loan from the Govt but will be repaid by FSA authorised members. This is likely to be not only deposit takers but all FSA authorised firms.

anthony7777777

Yes they took my 70k joint fixed term bond and sold it to Abbey where I already had the same bond,,VERY CLEVER it will now cost me 90 days interest to get one of them out.

jamesd

You're one of the big winners from the FSCS and government guarantee. Congratulations on having them save your money.

dunstonh

it will now cost me 90 days interest to get one of them out.

And why would you want to do that?

anthony7777777

Abbey are operating on one FSA licence even with tomorrow's increase 40k is not covered by any guarantee

EalingSaver

anthony7777777 wrote: »

Yes they took my 70k joint fixed term bond and sold it to Abbey where I already had the same bond,,VERY CLEVER it will now cost me 90 days interest to get one of them out.

Sold it??? So your deposit is an ASSET to them, not a LIABILITY? Interesting view.....

Presumably you would have preferred that B&B had simply been left to gone down the swanny and you lost your money? Or that the FSCS guarantee had been invoked on an indvidual basis rather than corporate level and you would now be going through the paperwork of claiming your compensation (presumably with a payout period of 3 to 6 months during which you would have also lost interest).

Are you also the person that put up the post saying it was outrageous you weren't consulted on this? Did you ever pick up that voice mail from GB/AD asking for your consent?

LucyTheDwarf

There's no pleasing some...

In the same way, I cannot understand people quibbling about whether they'd get interest in the period after the collapse of the bank, and before the received compensation... I'd be bloody grateful to get my deposit back!!!

opinions4u

anthony7777777 wrote: »

Yes they took my 70k joint fixed term bond and sold it to Abbey where I already had the same bond,,VERY CLEVER it will now cost me 90 days interest to get one of them out.

Well, it beats the bank going under, the Government not intervening and there being no FSCS.