If there's a banking collapse how much does UK govt guarantee?

emesee

moneylover wrote: »

was reading this afternoon on 'This is Money' (I think) that splitting money between different institutions isnt always the whole answer as banks operate subsidaries under different names. So Halifax/Bank of Scotland has IF, Birmingham Midshires and Sainsburys etc. Only if a subsidiary is separately authorised by the FSA would it count as a separate claim. In the article it stated that HBOS says none of their savings accounts are authorised separately.

Does anyone know where a list of banks and their subsidiaries can be found? I think that would be useful for everyone who has savings !!!

jenz

I have a large amount of money invested in one bank, and have heard on the news (re northern rock) that savings of under 30k are safe - what happens if you have more than this if the bank crumbles?

This has scared me this week - is it wise to spread your money around just in case

wombat42_2

jenz wrote: »

I have a large amount of money invested in one bank, and have heard on the news (re northern rock) that savings of under 30k are safe - what happens if you have more than this if the bank crumbles?

This has scared me this week - is it wise to spread your money around just in case

NO BANK WILL BE ALLOWED TO CRUMBLE. IT WILL JUST GET TAKEN OVER BY ANOTHER BANK.

NORTHERN ROCK IS NOT SHORT OF MONEY. IT JUST HAS CASH FLOW PROBLEMS.

kennyboy66_2

wombat42 wrote: »

NO BANK WILL BE ALLOWED TO CRUMBLE. IT WILL JUST GET TAKEN OVER BY ANOTHER BANK.

NORTHERN ROCK IS NOT SHORT OF MONEY. IT JUST HAS CASH FLOW PROBLEMS.

Either it has cash flow problems OR it is not short of money.

How can it be both?

dunstonh

It is asset rich but MAY have a problem getting credit to fund future lending. Nothing to do with current savers or borrowers.

The facility with the BoE is like a temporary overdraft facility in case NR need it. They havent yet and may not do and the BoE only make that sort of facility available to companies which are solvent.

muppetry

emesee wrote: »

Does anyone know where a list of banks and their subsidiaries can be found? I think that would be useful for everyone who has savings !!!

Good idea!

There seem to be a lot of threads on this topic at the moment!

MattyNeth

If you actually read the compensation scheme they do not "guarantee" anything.

Read chapter 2.4

"In extremely adverse circumstances the FSCS might be left unable to pay eligible claimants what they are legally entitled to under the scheme"

http://www.fsa.gov.uk/pubs/cp/cp07_05.pdf

dzug

dunstonh wrote: »

I'm not complaining. I just had to smile and the way it was worded.

That said, I didn't enjoy paying out just over £6000 in levies this year towards the various Govt departments with their overspending on wallpaper and coffee machines.

When I worked in government (not that long ago) we didn't have any wallpaper and the coffee machines had to be self funding.

dzug

jamesd wrote: »

dunstonh, I thought that might give you a laugh. It was worded that way to get as far as possible from the idea that the government is doing the guaranteeing and point out that in the end the consumers are paying for it. Of course, you get to pay the actual bill.

Ultimately, who pays for everything? Consumers of course. Who else is there?

jenz

emesee wrote: »

Does anyone know where a list of banks and their subsidiaries can be found? I think that would be useful for everyone who has savings !!!

Great post - anyone come up with a list????