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Very worrying stop press news re Anglo Irish
Comments
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To invest in a bank with any significant attached risk in today's climate, premised on the assumption that HMG will somehow bail out savers if it all goes pear shaped (which they won't), beggars belief. Apart from being foolhardy it is morally reprehensible to even contemplate leeching off the taxpayer for the chance of a few extra quid in interest. Is this viewpoint based on greed or stupidity ? Both, I think.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
which banks do you think don't have any significant risk attached in todays climate ?
The whole banking system has significant risk right now, and any bank going bust is making whats left more risky - withdrawing savings actually makes the situation worse not better0 -
GeorgeHowell wrote: »invest
Please stop using this word. This is not investing, it is saving and there's a very big difference.GeorgeHowell wrote: »in a bank with any significant attached risk in today's climate, premised on the assumption that HMG will somehow bail out savers if it all goes pear shaped (which they won't), beggars belief. Apart from being foolhardy it is morally reprehensible to even contemplate leeching off the taxpayer for the chance of a few extra quid in interest. Is this viewpoint based on greed or stupidity ? Both, I think.
What about the fact that the bank is UK registered and regulated by the FSA? I'd say that the FSA should bear significant responsibility in ensuring that savings accounts are very low/insignificant risk places to put money.
FYI, I don't have any money saved with Anglo Irish.0 -
Please stop using this word. This is not investing, it is saving and there's a very big difference.
This is a tenuous distinction. For straightforward bank accounts it is saving. For bonds etc 'invest' is not necessarily an inappropriate term if you look at various dictionary definitions. In any case, in the context of this discussion I think everyone understands that we are talking about making deposits in banks and not about buying their shares or corporate bonds.
Regarding all banks being risky, of course they are. All the more reason then to stick with those that are fully and unequivocally included in the UK FCSC, and also that are UK based so that HMG has political equity in preventing a run on them, and in ensuring that depositors and savers would be fully and quickly compensated. The FSCS does not have unlimited resources, and could be strapped at some point. If a foreign-based bank is involved then people might well have to wait for compensation for the argument to shake out as to who coughs up. The Iceland example wil not necessarily be repeated, especially as everyone has now been warned -- in spades.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
what banks are UK based ?
Alliance & Leicester ?
HSBC ?
Abbey ?0 -
One of the options that the Irish government is considering is moving all the toxic debt from all the other Irish banks into the Anglo Irish in other words having only one bank with bad toxic debt.
From the point of view of a saver I certainly dont want my money in a bank that is specifically known for having all or most of the toxic debt of a country on its books.
Hasn't been decided yet by the Irish government but it is one of the options being considered.0 -
it would make no difference to a saver in Anglo Irish - its owned by the Irish State now0
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what banks are UK based ?
Alliance & Leicester ?
HSBC ?
Abbey ?
As you asked the question, yes, HSBC is UK based.
Indeed, it can be regarded as a British success story - see here:
http://en.wikipedia.org/wiki/HSBC
It was founded in Hong Kong by ex-patriate Scots and the HQ moved to London in 1993 just before Hong Kong reverted to China.
It did threaten to move out of the UK to avoid tax some time ago, but currently has no plans to do so.0 -
Other than Iceland, which other states have gone into financial difficulties?
As Ireland is in Euro zone they won't have the same currency issues that Iceland faced0
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