Independent Scotland's FIAT currency - when should I move my savings?

CLAPTON

for the great majority of people there is no risk in moving their money into England
but there are unknowns in leaving it in Scotland


unless your circumstances are special in some way, it makes sense to move to England as there is nothing to lose.

masonic

HAMISH_MCTAVISH wrote: »

Capital controls to prevent movement of money are very possible in the event of a Yes vote to prevent a run on Scottish banks.

If that happens, there would be no notice, and no opportunity to move funds before it took effect.

That will really hurt people who need to pay for goods and services from English companies. The inability to pay loans/mortgages/credit cards in particular could lead to quite unpleasant consequences. More important than that I have a savings account with Tesco bank with a few quid in it, which apparently is registered in Scotland :eek:

Linton

All this seems madness and scaremongering deliberately stirred up by the NO campaign. Havent they got any better arguments?

Is there any problem with those UK banks that are fully owned by banks in Spain or Australia? Equally well a Scottish registered bank could have an English subsidiary and vice versa.

As to currency controls - an independent Scotland wont exist for perhaps years whilst all the details are negotiated. How can you have capital controls within the UK?

Linton

All this seems madness and scaremongering deliberately stirred up by the NO campaign. Havent they got any better arguments?

Is there any problem with those UK banks that are fully owned by banks in Spain or Australia? Equally well a Scottish registered bank could have an English subsidiary and vice versa.

As to capital controls - an independent Scotland wont exist for perhaps years whilst all the details are negotiated. How can you have capital controls within the UK?

CLAPTON

Linton wrote: »

All this seems madness and scaremongering deliberately stirred up by the NO campaign. Havent they got any better arguments?

Is there any problem with those UK banks that are fully owned by banks in Spain or Australia? Equally well a Scottish registered bank could have an English subsidiary and vice versa.

As to capital controls - an independent Scotland wont exist for perhaps years whilst all the details are negotiated. How can you have capital controls within the UK?

As far as banks are concerns, ownership is not the issue as most are owned by shareholders who can and do live anywhere in the world.


The issue for banks is who regulates them and who provides liquidity when they run out on money (lender of last resort) and who would bail out savers if the bank crashes.


So if you have savings or a current account in a bank, would you prefer that Scotland guarantees your money or England?


Santander e.g. is regulated in the UK and the BoE act as their lender of last resort and retail customer's saving are guaranteed by the UK government.




So my money is now all in England : 300 years of never defaulting on a debt.
Scotland, an untried country whose Chief minster has already threatened to default on debts if he doesn't get his way.

Linton

CLAPTON wrote: »

As far as banks are concerns, ownership is not the issue as most are owned by shareholders who can and do live anywhere in the world.


The issue for banks is who regulates them and who provides liquidity when they run out on money (lender of last resort) and who would bail out savers if the bank crashes.


So if you have savings or a current account in a bank, would you prefer that Scotland guarantees your money or England?


Santander e.g. is regulated in the UK and the BoE act as their lender of last resort and retail customer's saving are guaranteed by the UK government.




So my money is now all in England : 300 years of never defaulting on a debt.
Scotland, an untried country whose Chief minster has already threatened to default on debts if he doesn't get his way.

Presumably Caledonian Bank (England) would be regulated in England and Barclays (Scotland) would be regulated in Scotland despite have HQs and holding companies in the other country.

As an Englishmen living in England it doesnt directly concern me, but I would take the view that it isnt Scotland leaving the UK, its more the UK splitting into 2 new entities. I dont see why the tangible and intangible assets of say the BoE should reside purely in one of them. How the assets and liabilities of the old UK are split is open for negotiation.

CLAPTON

Linton wrote: »

Presumably Caledonian Bank (England) would be regulated in England and Barclays (Scotland) would be regulated in Scotland despite have HQs and holding companies in the other country.

As an Englishmen living in England it doesnt directly concern me, but I would take the view that it isnt Scotland leaving the UK, its more the UK splitting into 2 new entities. I dont see why the tangible and intangible assets of say the BoE should reside purely in one of them. How the assets and liabilities of the old UK are split is open for negotiation.

I'm not sure what you mean.
There is no presumably about it; it's about real money.
Who bails out a failing bank?
Which taxpayer pick up the bill?
Have you not noticed that the UK has massive debts due to bailing out the Scottish banks?
What assets are you referring too : the banks only exist because that taxpayer poured money into them.




Who bailed out the UK savers in the Icelandic banks?
Who bailed out the UK savers in the Irish banks?
Who bailed out the UK savers in the RBS and HBOS (LLoyds) (both Scottish banks).
Who bailed out savers in the Dunfermline Building Society?
Who bailed out savers in the Cypriot banks?


So the question is who would bail out savers in a Scottish bank registered in Scotland?
and
who bails out savers in roUK banks if they fail?... here the answer is easy it is the RUK tax payers just as we are in austerity bailing out RBS and HBOS

TCA

CLAPTON wrote: »

Who bailed out the UK savers in the Icelandic banks?
Who bailed out the UK savers in the Irish banks?
Who bailed out the UK savers in the RBS and HBOS (LLoyds) (both Scottish banks).
Who bailed out savers in the Dunfermline Building Society?
Who bailed out savers in the Cypriot banks?

here the answer is easy it is the RUK tax payers just as we are in austerity bailing out RBS and HBOS

You might find this of interest:

http://www.huffingtonpost.co.uk/gordon-macintyrekemp/scottish-independence-bank-bailout_b_4895234.html

Linton

CLAPTON wrote: »

Have you not noticed that the UK has massive debts due to bailing out the Scottish banks?

They werent "Scottish" Banks. They were UK banks that happened to be registered in Scotland, a part of the UK. As UK banks they were rescued by the UK government using UK money.

If the UK splits the two governments will need to sort out regulation. If it turns out that there are two separate regulatory authorities any current UK bank will need to end up with two separate companies each regulated locally. It doesnt matter whether an English regulated bank has head quarters in Scotland or vice versa. Just like Santander and Spain.

CLAPTON

TCA wrote: »

You might find this of interest:

http://www.huffingtonpost.co.uk/gordon-macintyrekemp/scottish-independence-bank-bailout_b_4895234.html

yes indeed


many misunderstand the difference between a liquidity crisis and being insolvent