Santander!!!!!!

srcandas

innovate wrote: »

It's very british - - owned 85% by the british taxpayer.

Of whom 80% are English - I rest my case

Fred_Bear_2

innovate wrote: »

It's the FSCS that provides us with the £85K guarantees.

The FSCS is funded by the financial services industry.

Sorry to be a bit dim, but what is the 'financial services industry'. Is it the banks?

innovate

ChiefGrasscutter wrote: »

No major UK operating bank/subsidiary would ever be allowed to collapse totally by a functioning UK government...

Would agree with you that the likelihood of a total collapse would be highly unlikely at present - - - - but then, I would have said the same about the US and Lehman Brothers in 2007 - and see how terribly wrong I would have been!

Also, the risks don't just exist with smaller banks - - - it's actually relatively easier to rescue the smaller ones. Where is gets really tricky is when a really large outfit is in trouble - - some of them are simply too large to be rescued. They would take the whole country into bancrupty, so the lesser evil would be to let them die.

innovate

Fred_Bear wrote: »

Sorry to be a bit dim, but what is the 'financial services industry'. Is it the banks?

Banks, Building Societies, Insurance companies......click on that link that I provided and you shall find....

The FSCS is funded by the financial services industry. Every firm authorised by the FSA is obliged to pay an annual levy, which goes towards our running costs and the compensation payments we make.

innovate

srcandas wrote: »

Of whom 80% are English - I rest my case

alright, you win :cool:

I couldn't lay my hands on any figures on what tax revenues come from Wales, NI, Scotland, England, so I thought I just make a politically correct post, lol...anyone got those figures, btw?

Fred_Bear_2

innovate wrote: »

Banks, Building Societies, Insurance companies......click on that link that I provided and you shall find....
The FSCS is funded by the financial services industry. Every firm authorised by the FSA is obliged to pay an annual levy, which goes towards our running costs and the compensation payments we make.

So if a bank got into trouble, depositors would be compensated from a pot of money which has been built up by the industry. If this was insufficient, then what? Would the industry spend their own money to pay out the depositors? Under the scheme, would the government/BoE get involved if necessary?

paulpa66

Don't the banks have this money set aside and regulated should they go T...ts up?
After 2008, did they not have to increase the pot dependant on their size.
Or something like that

jimjames

ChiefGrasscutter wrote: »

Actually the cost of guaranteeing personal deposits (the FSCS £85K) is reasonably small change - unlike larger corporate deposits which are not protected.

I'm not sure it is correct to say the cost of the FSCS is small change. Certainly the annual reports of building societies that I am a member of think it is actually a pretty hefty levy and highly unfair on them as they have on the whole been far more responsible.

innovate

Fred_Bear wrote: »

....If this was insufficient, then what? ...

A fundamental part of the scheme is that it is sufficient to cover the liabilities of its members.

At least that's how the theory goes.

I am sure none of us would ever want to find out what would happen if the FSCS scheme (or, for that matter, its counterparts in other EU countries) would be unable to deliver as and if it was needed again. It would be armageddon.

But I don't think we need to worry about that - the schemes are very well covered, and supervised, by the Regulators.

Fred_Bear_2

innovate wrote: »

A fundamental part of the scheme is that it is sufficient to cover the liabilities of its members.
At least that's how the theory goes.
I am sure none of us would ever want to find out what would happen if the FSCS scheme (or, for that matter, its counterparts in other EU countries) would be unable to deliver as and if it was needed again. It would be armageddon.

But I don't think we need to worry about that - the schemes are very well covered, and supervised, by the Regulators.

That must be reassuring to depositors in Greek banks!