Bank bail ins are coming to the UK

Legacy_user

Bank bail ins are now legal from 1st January 2016. Its no longer the government who have to bail out banks.


I'm not a doom merchant, however, I am scared the bank bail ins are coming to the UK and could happy any time in 2016

I believe the governments looked at Cyprus and thought, it worked there, so lets roll it out across the whole of Europe and eventually USA. Bank runs in Italy are already starting this week.

I have £75k in a few accounts. I'm hoping FSCS would cover me but I honestly don't know.

I think some banks will take 50% of deposits over £75k. I would honestly commit suicide if the banks take most of my money...probably sounds selfish but that's how I feel ...yeah its a lot but I'm young and worked hard for it, I want to take some rest and travel the world but doesn't seem like I can plan for anything. If you asked would I take a 0% return on money but 100% security. I would bite your hand off.

Masomnia

I'm probably in the minority, but I think it's a positive move.

If you want total safety go with NS&I.

Crashy_Time

berbastrike wrote: »

Bank bail ins are now legal from 1st January 2016. Its no longer the government who have to bail out banks.


I'm not a doom merchant, however, I am scared the bank bail ins are coming to the UK and could happy any time in 2016

I believe the governments looked at Cyprus and thought, it worked there, so lets roll it out across the whole of Europe and eventually USA. Bank runs in Italy are already starting this week.

I have £75k in a few accounts. I'm hoping FSCS would cover me but I honestly don't know.

I think some banks will take 50% of deposits over £75k. I would honestly commit suicide if the banks take most of my money...probably sounds selfish but that's how I feel ...yeah its a lot but I'm young and worked hard for it, I want to take some rest and travel the world but doesn't seem like I can plan for anything. If you asked would I take a 0% return on money but 100% security. I would bite your hand off.

I wouldn`t commit suicide over anything a bank did if I was you, really not worth it. Just plan your strategy and go ahead with it. You may be right, if Italy unravels anything could happen, but the UK authorities will do everything in their power to avoid obvious bail-ins of smaller deposits IMO, we are just not built to accept that in this country, it would seriously undermine the status quo, but they might avoid serious unrest if the benefits get paid? You should just stick 50k in premium bonds and drip the rest into the stock market via two or three tracker funds with different companies that you think are stable, make one of them an ISA to get your tax free portion, or one cash ISA, one tracker ISA and one other tracker (all different providers unlikely to go bust) You could always withdraw it all, we are in deflation now, it won`t lose value under the bed for a while.

mayonnaise

berbastrike wrote: »

I think some banks will take 50% of deposits over £75k. I would honestly commit suicide if the banks take most of my money...probably sounds selfish but that's how I feel ...

That's a bit radical!
I had quite a substantial sum stashed away in Icesave when it went bust back in 2008. When it became clear Iceland was not going to honour the deposit guarantee, I really thought we'd lost it all, but I felt surprisingly calm about it all. It's life. You win some, you lose some.

mwpt

Masomnia wrote: »

I'm probably in the minority, but I think it's a positive move.

If you want total safety go with NS&I.

I guess I see your point. As long as it's clear, depositors are on the line for the risks the banks take with their money, then perhaps depositors can make an informed decision and remove their money from a system which seems to work against them, while rescuing bad debt.

mayonnaise

Crashy_Time wrote: »

I wouldn`t commit suicide over anything a bank did if I was you, really not worth it.

I agree with Crashy. :eek:

System

If it left with me no money? Money that I had worked for, paid tax on and put away for security. It would honestly make me want to give up

Crashy_Time

berbastrike wrote: »

If it left with me no money? Money that I had worked for, paid tax on and put away for security. It would honestly make me want to give up

Hence the reason I said to plan for the outcome you have identified as a possibility. If you are genuinely worried that you could lose your money it would be better out of the banking system IMO. The other option is to do some research and keep an eye on internet threads discussing the possibility of bank bail-ins happening (In the UK or anywhere) That would be here, HPC website and maybe Motley Fool for starters. If my memory of the time is correct the Icelandic problems were flagged up on HPC well before it all kicked off.

Crashy_Time

mayonnaise wrote: »

I agree with Crashy. :eek:

Scary...:eek:

cells

spend it or risk it

the banks have their own capital that will need to be burnt first, and they are putting in place systems where debt to equity swaps will happen well before they go after your money

The two combined if i recall correctly is going to be about 24% as a buffer.

Mistermeaner

Bank with your mortgage provider. Quid pro quo