Egg (Citigroup)

Lynt_3

wagdog wrote: »

Which is a good reason for the ultra-paranoid to reduce their account balances to half the FSCS limit. The £50K protection is per institution not per account (and not per bank either). If you cannot tolerate the risk of being above the compensation limit even for a few days should an institution you already bank with buy Egg off Citi, and also decide to bring the new asset under the same institutional registration with the FSA, then it would be prudent to reduce all bank balances to £25K. That will ensure you have adequate time to redistribute your savings before the next banking shock hits.

Ultra-paranoid? Moi?

diamonds

when the US admits its bankrupt ( & has been for many decades in reality & not on paper ) then we are all dead anyway, Citibank goes bust then the yanks admit it is bankrupt........there is a very small chance Citi will go to the wall, how could the supremity of the world let Citi go under - its more than financial loss,

Citi will prob be the last man standing global.......


what all you want to ask is how could our goverments allowing borrowings to financial levels that in real currency NEVER existed

EGG will be sold - its never made any company enough money.....then again the UK pound & Egg are a massive plus to Citibanks books at the moment

sabretoothtigger

But unlike those other institutions, Citi is in no danger of bankruptcy. It recently received a $25bn investment from the Treasury and its credit is backed by the Fed. Its counterparties are not scrambling to put their business elsewhere, as was the case with Bear Stearns and Lehman.

http://www.ft.com/cms/s/0/29017c6a-b99c-11dd-99dc-0000779fd18c.html

realaledrinker

wagdog wrote: »

Which is a good reason for the ultra-paranoid to reduce their account balances to half the FSCS limit.

Less a bit more to allow for interest receipts!!

The ultra paranoid would surely be better off committing suicide, then they would have nothing to worry about, surely.

Such comments are good for a wind up or virtual bog roll: nothing else.

Lynt_3

http://www.boston.com/business/articles/2008/11/24/us_in_deal_to_rescue_citigroup/

Should we just sit tight and wait??

Baldur

Lynt wrote: »

http://www.boston.com/business/articles/2008/11/24/us_in_deal_to_rescue_citigroup/

Should we just sit tight and wait??

There's a report from closer to home at http://news.bbc.co.uk/1/hi/business/7745168.stm

Lynt_3

So, if they are being rescued, our savings with Egg are still safe??
Do I still top up in a couple of weeks, or put it elsewhere?


All a bit confusing/unsettling

Mr_K

Your money is very safe. Citigroup is now backed by the US Govt and protected by the UK Govt, I don't think you'd get many other deposits protected by 2 governments.
Citi's shares have gone up by 68% today, if only we'd invested in them last week....:rolleyes:

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/2/15627/intraday.stm

Lynt_3

68% rise in shares sounds good :T

I'll stick with my 6.3% fixed then

Lokolo

Mr K, they went down loads on Friday, so you would have to have bought them at the very end of Friday.

If I could have I would have, theres no way the US would let Citibank fall. Would have been a nice little earner. However if they US did let them fall I would have lost a lot of money!