No Deal and your transaction

AskAsk

my money is on a deal.  let's wait and see if i lose my money.  i don't generally do 

Hannimal

princeofpounds said:

gab3x said:

princeofpounds said:

Are you joking? There may be some trade-related disruption, as customs checks and tariffs that previously didn't apply come into effect. There isn't going to be systemic bank failure. There's far too much scaremongering in the media at the moment.

Are you at the moment involved in a transaction? I am asking because your attitude to risk might be different if you had hundreds of thousands of pounds of your money on the table.

I'm involved in international transactions almost every single day. Many of which involve deep analysis of banks.

I take these aren't between EU and UK? If they are, your attitude is rather odd. 

princeofpounds

Hannimal said:

princeofpounds said:

gab3x said:

princeofpounds said:

Are you joking? There may be some trade-related disruption, as customs checks and tariffs that previously didn't apply come into effect. There isn't going to be systemic bank failure. There's far too much scaremongering in the media at the moment.

Are you at the moment involved in a transaction? I am asking because your attitude to risk might be different if you had hundreds of thousands of pounds of your money on the table.

I'm involved in international transactions almost every single day. Many of which involve deep analysis of banks.

I take these aren't between EU and UK? If they are, your attitude is rather odd. 

Yes, some are. A substantial minority. What's odd about my attitude? Yes, I poured cold water on the idea of bank collapses due to lacking a comprehensive trade deal, because I think it's an idea that deserves to have cold water poured on it.

SpiderLegs

I must admit, whenever I’m about to make a significant financial commitment, I always nip down to Tesco’s first to count the toilet rolls.

poultrum

gab3x said:

I am waiting to exchange (could happen today) but I am starting to worry that the severe disruption of No Deal could cause systemic bank failure in early Jan (when we are scheduled to Complete) and as a result transaction might fail and I might be liable for damages.

How is No Deal affecting your transaction?

p.s. yes I know we don't have a confirmed No Deal but let's face it this is the most likely outcome

Its unfortunate you can`t mention Brexit and discuss any potential issues ,as you still have alot of people putting there political  spin on things ,when in reality nobody knows what will happen over the next month, or 5/10 years.

However as with every major change,we in the UK will see winners and losers and at this point nobody can predict who they will be .So to answer your question I think you will be ok , the banks are unlikely to collapse in the next few months.Property market is a major source of income for most MP`s so they will not want to see it fail. and if it does you`ll at least have completed by then.   

Salemicus

gab3x said:

Salemicus said:

The risk of a no-deal Brexit is priced in to the market, and has been for some time. It isn't some black swan. If it had a significant chance of causing systemic bank failure, there would already have been a shadow run on the banks, like in 2007. What do you know that the professionals don't?

Besides, it's now 2 weeks to Christmas, so it's too late to do anything about it. You can worry yourself silly about imaginary risks like this, or you can relax and enjoy the festive period. Either way, it will accomplish the same thing. 

I am not talking about the pricing, I am talking about banking system stability. When people start to panic in January we might face a bank run. Remember toilet rolls in 2020? 

A systemic bank failure would have a massive effect on market prices (e.g. for credit, FX, shares, etc). So a substantial risk of such would be reflected in those prices today. No-one is going to "panic" in January, except perhaps you, because there is nothing to panic about, and even if some people did panic, the banking system would be fine. There may well be disruption at the ports, and I suspect we will be somewhat poorer as a country as things shake out, but the banks won't fail.

A bank run is nothing like a toilet roll shortage. Tesco doesn't hold toilet roll on deposit for its customers or borrow it from other supermarkets, if Tesco is running short of toilet roll, it doesn't make it harder for them to get more, and the government doesn't insure Tesco's toilet roll in case the company goes bust. It's a laughable comparison. Funnily enough, it's much more plausible that Brexit will lead to a shortage of toilet roll than a banking collapse.

ratechaser

Of all the things that I am worried about relating to a no deal Brexit, systemic bank failure is pretty much bottom of my list. Good job too, given that I work for of the biggest banks around. Don't really want to have to deal with a second administration event during my career...

As for Y2K, that was one of the easiest £500s I ever made as a (then) junior analyst - pop in for 5 minutes to test that our systems still worked, then off down the pub for several hairs of the dog...

gab3x

First of all thank you all for your comments and opinions. 

I don't believe there will be a bank run or a financial system collapse for sure, if I did I simply wouldn't proceed. I do worry that the risk is higher than normal but judging by your remarks it seems this is misplaced.

What I should perhaps worry more about is that we haven't exchanged again today, but that's another story.

DayDreamerandGeneralWaster

Christ on a bike. 

Do you have an anxiety disorder? Or perhaps l should say, maybe see your doctor about your anxiety levels. I'm not being rude, this level of catastrophising is unusual. 

Meh123

I’m due to complete in January too. I hadn’t even considered this as an issue.... and still don’t. There are so so many things to stress about during a purchase/sale but for me personally this isn’t one. It’s on par with what if rabid badgers eat our new house after exchange or what if our conveyancer is struck by lightning. Highly unlikely.