Banks with lowest/highest bankruptcy and collapse risk

pmduk

henm2 wrote: »

HSBC has introduced a whole raft of AML (anti money laundering ) procedures since July last year and there is more to come I believe. That is why they ask more questions for account opening and for transactions.

I suspect the arbitrary way HSBC introduced these rules has added to the paranoia.

Thrugelmir

Uxb wrote: »

The UK Gov would never allow a major clearing bank to fold.

Banking Reform Act was passed in December 2013. Change is on it's way.

henm2

Thrugelmir wrote: »

Banking Reform Act was passed in December 2013. Change is on it's way.

Other legislation which HSBC is going to comply with worldwide from this July is the US's anti tax evasion Foreign Account Tax Compliance Act (FATCA). So even more questions particularly when account opening.
Basically because of HSBC's 5 year probation agreement with the US authorities starting 2012 HSBC will follow anything the US dictates worldwide for compliance issues.

gt94sss2

Heng_Leng wrote: »

I certainly wouldn't put HSBC in the same category as National Savings - the latter is 100% guaranteed by the UK treasury.

The OP was asking for 'safe' institutions - one of the very few I can think of which is 'safer' than HSBC would be National Savings...

I can easily see a scenario where capital held by HSBC UK is recalled back to the Far East. Remember, in the last banking crisis, HSBC UK was required to be bailed out by it's Asian parent

.

There are rules which prevent this - as I say the different elements of HSBC are legally different companies. They publish their owns accounts etc. The same issue/concern is often raised about Santander in the UK.

If you look at the figures each bit of HSBC tends to be conservatively run lending out less than it has in deposits - and they have excess capital in both the UK/Asia.

Are you sure it wasn't HSBC in the US had more capital allocated to it from the 'British' Holding company (HSBC Holdings plc) which ultimately owns all the HSBC Banks (as opposed to HSBC Bank plc which is the UK Bank)?

Regards
Sunil

Money-Saving-King

Buy some tin foil and wear it as a hat is my best advice!

antrobus

qwerty1066 wrote: »

....Does anyone know which UK banks are the most/least exposed to credit risk which could turn into sudden gigantic losses (and break the bank)? HSBC? ....

Credit default swap rates should give you the answer. For example;
http://www.meteoram.com/uploads/files/280214.pdf