Removing funds from Barclays

MrShed

abaxas your point makes no sense. The money is exactly the same position as it was prior to the "run" on the bank, its just that people panic and act irrationally. If people had just thought for 5 minutes, and then came to a rational decision, they would have realised that withdrawing all of your money from the bank is a fruitless exercise.

abaxas

MrShed wrote: »

abaxas your point makes no sense. The money is exactly the same position as it was prior to the "run" on the bank, its just that people panic and act irrationally. If people had just thought for 5 minutes, and then came to a rational decision, they would have realised that withdrawing all of your money from the bank is a fruitless exercise.

No the money isnt!

Why are you happy when you cant get access to your money? Do you like not being able to pay your bills?

free4440273

I have less than 30K (far less) in Barclays, so I will not be taking out my monies. I would certainly be sympathetic and show understanding towards a customer who had, say, a 100K+ with Barclays, and wanted to withdraw the monies with effect from Monday. This is all about confidence and fragility (as a poster above has mentioned): I think we're going to see far more of this. This is just the tip of the iceberg IMO. This will go from bad to worse. I really do hate the way the banks keep pinning the blame on the American subprime mortgage market: for goodness sake, take at least some responsibility. Maybe I'm being too pessimistic, it has been known :rolleyes:

Iamthesmartestmanalive

abaxas wrote: »

No the money isnt!

Why are you happy when you cant get access to your money? Do you like not being able to pay your bills?

But every barclays and norther rock customer can and will remain to do so like they normally would unless idiots like you jam the systems again

Barclays will be fine, the moneys available to withdraw/use as normal and unless people like you and the OP cause a panic and see mass withdrawals nothing will change

Your franklly talking out of your uneducated !!!!

WTF?_2

Iamthesmartestmanalive wrote: »

But every barclays and norther rock customer can and will remain to do so like they normally would unless idiots like you jam the systems again

Barclays will be fine, the moneys available to withdraw/use as normal and unless people like you and the OP cause a panic and see mass withdrawals nothing will change

Your franklly talking out of your uneducated !!!!

Abaxas isn't being an 'idiot' - he's quite intelligently figuring out that if there is a run on Barclays his money is going to be very difficult to access.

Maybe you have infinite amounts of cash readily to hand but most people use their bank accounts to pay bills or handle financial 'emergencies'. In the event of a run it's very, very difficult to access your cash if you need to use it. But hey, who needs to use their money :rolleyes:

Plus, if there is a run under way or a possibility of a run it's absolutely rational and sensible to get your money out ASAP. Even the governor of the Bank of England conceded that once the run started on Northern Rock it was absolutely rational to want to get all your cash out:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2817746.ece

'Once the run starts it was then rational for other people to join in...'


Keeping your money in a bank that even has a whiff of instability about it has absolutely no upside at all, unless said bank wants to offer a drastically better interest rate to retain the money in which case the risk:reward ratio decreases, maybe enough that you want to take the risk.

MrShed

First of all abraxas - yes the money WAS in the same position. People who had major difficulty getting money were people who had notice period savings. Therefore, same position.

If people are RATIONAL !!!!!! and abraxas, they would realise that they money is covered up to £31k(or whatever the figure is) anyway. The sensible man would start to put NEW money elsewhere in case of emergencies(ie cash that would be needed quickly), and realise that whether the bank went under or not the money was safe in the long term.

MrShed

However, lets get one thing clear. The area discussed was that it is EVERYONE who acts like this who causes the problem. The issue is that as you will never be able to get everyone to stop, it is much like a domino effect - the more people who do make an irrational run on the bank, the more rational it becomes for more people to run on the bank, hence the situation gets exponentially worse. I dont think anyone would argue that had NO ONE run on the bank,there would have been VERY little issue with Northern Rock - and this was the point argued above, a theoretical point as it may be.

Generali

Unfortunately, when there's a bank run, the irrational ones are only the first few in the queue. Everyone else is being perfectly rational.

free4440273

MrShed wrote: »

However, lets get one thing clear. The area discussed was that it is EVERYONE who acts like this who causes the problem. The issue is that as you will never be able to get everyone to stop, it is much like a domino effect - the more people who do make an irrational run on the bank, the more rational it becomes for more people to run on the bank, hence the situation gets exponentially worse. I dont think anyone would argue that had NO ONE run on the bank,there would have been VERY little issue with Northern Rock - and this was the point argued above, a theoretical point as it may be.

^but with NR there is indeed a tangible issue (it's not just one of perception), which is why they are being 'loaned' monies from the BofE. Essentially, NR is (has been) nationalized and there is no evidence that the BofE will get their monies back.

MrShed

To the best of my knowledge, NR have not to date in fact loaned any money from the BoE.