NatWest holding my cash to ransom

C_Mababejive

ChiefGrasscutter wrote: »

Jeez not this one again.
Do you pump this stuff out it in the hope no one who understands is reading this?

So:
The Cyprus banks lent large sums of their deposits to various ill advised things including the Greek banks and these sums were then substantially lost when the Greek economy imploded.

This is exactly the same as if you lent your mate £1000 and he lost it playing the lottery, or playing the stockmarket: the £1000 simply does not exist anymore. Now either your mate in this example borrows from somewhere else to pay you back (ie a taxpayer bail-out) or you the lender has to accept that most of your £1000 is lost (called a depositor bail-in) and you will not see the money again.

So there was no money to pay back the Cyprus depositors - it was not there - it did not exist anymore - it was certainly not "stolen" by "them".

Those depositors in the Cyprus banks who had up to the Euro100K sum in them were protected by the EU deposit protection law and and got it all back, while those above the Euro100K lost most of their money bar the first Euro100K.
I believe they also instigated capital controls to prevent a massive bank run developing when they banks re-opened - much like Greece did more recently.
This is exactly how the deposit protection scheme is meant to work and there was not much of a whimper about it because it worked exactly as it was advertised to, and exactly as it was intended to. The small depositors were protected, the large one were not.

We digress slightly but prior to the 2008 economic collapse, your average punter in the street was not aware of anything called deposit protection. Did it even exist? People fully expected that if they had money in a bank account in their name then it was safe and certainly much safer than keeping it around the home.

After 2008 we moved into a position where actually,no banks can take your money and if it all goes badly wrong, they dont have to give it all back to you. In fact if they go broke, HM Government will pay out.

Even worse, someone who wants to draw some of their money from their account over a counter cant have it due to the paranoia and arrogance of bank staff.

Bottom line, banks can no longer be trusted.

eskbanker

C_Mababejive wrote: »

After 2008 we moved into a position where actually,no banks can take your money and if it all goes badly wrong, they dont have to give it all back to you. In fact if they go broke, [STRIKE]HM Government[/STRIKE] FSCS (an independent body funded by industry levies) will pay out.

Fixed that for you!

mgdavid

C_Mababejive wrote: »

..........

Bottom line, [STRIKE]banks[/STRIKE] customers can no longer be trusted.

fixed that for you